How much advance notice will Degree Wellness provide franchisees before establishing, terminating, or changing the contribution to the Brand Fund?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness will provide franchisees with 60 days' advance notice before establishing or terminating the Brand Fund, as well as for any changes to the required contribution amount. The franchisee contributes 1% of gross revenues to the fund, and Degree Wellness can increase this amount, but it will never exceed 2% of gross revenue. These contributions are payable weekly, at the same time as the continuing franchise fees.

This advance notice allows Degree Wellness franchisees time to adjust their financial planning in response to changes in the Brand Fund contribution. For example, if the contribution increases, franchisees can prepare for the increased expense. Similarly, if the fund is terminated, franchisees can adjust their marketing strategies accordingly.

In addition to the Brand Fund, Degree Wellness may establish a program to provide additional marketing services to Studio franchises, which would involve local marketing activities. Franchisees would be required to pay a reasonable fee for this program, and Degree Wellness reserves the right to change the amount of this fee at any time. Degree Wellness will also have the right to reinstate the fund by giving franchisees thirty (30) days' advance written notice of reinstatement.

Overall, the 60-day notice period for changes to the Brand Fund and the 30-day notice for reinstating the fund provides Degree Wellness franchisees with some predictability and time to prepare for adjustments to their financial obligations and marketing strategies. However, Degree Wellness franchisees should be aware that the fees for additional marketing programs can be changed at any time.