What is Degree Wellness's obligation to provide marketing materials to franchisees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
without limitation, copyrighted and proprietary forms and materials). The Continuing Franchise Fee does not represent payment for the referral of customers or patients to you, and you acknowledge and agree that the
services we offer to you and our other Degree Wellness franchisees do not include the referral of customers or patients.
6.3 Brand Fund; Other Fees.
- a. Recognizing the value of advertising and branding to the goodwill and public image of Studio franchises, we will establish, maintain and administer an advertising fund (the "Fund") for such brand development as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Fund in the amount of one percent (1%) of the gross revenues of the Franchise. We will provide you with 60 days' advance notice of the establishment or termination of the Fund and any change in the required contribution. These contributions will be payable weekly with and at the same time as your Continuing Franchise Fees payable under Paragraph 6.2 above. At no time during the term of this Agreement will your contribution to the Fund exceed 2% of gross revenue. A further description of the Fund and your obligations with respect to advertising and promoting the Franchise is found in Section 11 of this Agreement.
- b. In the future, we may also establish a program to provide additional marketing services to Studio franchises involving the placement of clients on a local basis to perform marketing activities. This program would be required for all Studio franchises. You agree to pay the reasonable fee as determined by us. We reserve the right to change the amount of this fee at any time. If we choose to establish this program in the future, you agree to comply with all specifications and requirements contained in the Operations Manual concerning this program. This fee does not represent payment for the referral of customers or clients to you, and you acknowledge and agree that the services we offer to you and our other Degree Wellness franchisees do not include the referral of customers or clients.
- 6.4 Technology Fee. You are required to pay the monthly Technology Fee, defined and discussed in Section 11.4, for certain Website and technology-related services and expenses and any fees relating to the required human resources and payroll services discussed in Section 10.7.
- 6.5 Fees Relating to Optional Programs. We, or our affiliates, may offer additional optional services, products or programs in connection with your Studio Franchise, subject to an additional fee paid to us or third-parties.
- 6.6 Interest on Late Payments.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness will establish and maintain an advertising fund (the "Fund") for brand development. Franchisees must contribute 1% of their gross revenues to this fund, payable weekly along with continuing franchise fees. Degree Wellness will provide franchisees with 60 days' advance notice for the establishment, termination, or any changes to the required contribution to the Fund. The contribution to the fund will not exceed 2% of gross revenue during the agreement. A further description of the Fund and obligations with respect to advertising and promoting the Franchise is found in Section 11 of this Agreement.
Degree Wellness aims to maximize recognition of the marks and goodwill of Degree Wellness Studio franchises through the Fund. While Degree Wellness will endeavor to use the Fund to develop advertising and marketing materials and place advertising to benefit all franchises, it has no obligation to ensure that expenditures in any geographic area are proportionate to contributions from franchises in that area. Additionally, Degree Wellness does not guarantee that any franchise will benefit directly or in proportion to its contribution from the advertising and marketing materials developed or the placement of advertising. Degree Wellness is not a fiduciary with respect to the management of the Fund and assumes no direct or indirect liability or obligation regarding the Fund's maintenance, direction, or administration, except as expressly provided.
In the future, Degree Wellness may establish a program to provide additional marketing services to Studio franchises, involving the placement of individuals on a local basis to perform marketing activities. This program will be required for Studio franchises, and franchisees agree to pay the specified fee. If Degree Wellness chooses to establish this program, franchisees must comply with all specifications and requirements in the Operations Manual concerning this program.