What is the Degree Wellness Late Reporting Fee, and when is it due?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
us or our affiliates. |
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Expenses | Cost of audit and inspection (currently $1,200), plus any reasonable accounting and legal expenses | On demand | Payable if Continuing Franchise Fee or Fund contribution is understated by 2% or more, or you fail to submit required reports or financial statements. |
| Late Reporting Fee | $100 per week | 10th day of the month following any month for which any required report is not timely submitted. | Payable if any report or other information required to be submitted to us is received by us after the established deadline. |
| Returned Check Fee | $100 | As incurred | Due each time a check you write to us is dishonored. |
| Supplier and Product Evaluation Fee | Cost of inspection and test of product sample (currently $500-$700) | On demand | Payable if we inspect or test product samples from any proposed supplier nominated by you (see Item 8). |
| Insurance Reimbursement | Amount of unpaid premiums and related costs | On demand | Payable if you fail to maintain required insurance coverage and we obtain coverage for you. |
| Replacement of Operations Manual | An amount set by us; As incurred currently $250 | Payable if your copy of the Operations Manual is lost, destroyed, or significantly damaged. | |
| Renewal Fee | $10,000.00 | Upon renewal | P |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee may incur a Late Reporting Fee of $100 per week. This fee is applied if any required report or information is submitted after the established deadline. The Late Reporting Fee is due on the 10th day of the month following any month for which a required report is not submitted on time.
This means that Degree Wellness franchisees must ensure all reports and required information are submitted promptly to avoid incurring this weekly fee. The fee accrues weekly, so consistent late submissions could result in significant additional costs. Franchisees should establish internal controls and processes to ensure timely submission of all required reports.
Late fees are a common practice in franchising to encourage compliance with reporting requirements. Franchisees should confirm what reports are required and the exact deadlines for submission to avoid this fee. Missing the deadline by even a day can trigger the fee, so franchisees need to be diligent in their reporting practices.