What are the obligations of a Degree Wellness franchisee regarding the maintenance of accurate and complete financial records (Item 9), considering the computer systems and software requirements outlined in Item 8?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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We are not required to spend ANY amount in advertising in your territory.
Computer System and Billing System
You must purchase and use the computer hardware and software and billing system (collectively, "Computer System") that we periodically designate to operate your Degree Wellness franchise. You must obtain the Computer System, software licenses, maintenance and support services, and other related services from the suppliers we specify (which may be limited to us and/or our affiliates). The Computer System will store and generate customer management and accounting, billing, and credit card information. The estimated initial cost of purchasing your Computer System will range from to . We may periodically modify the specifications for, and components of, the Computer System. These modifications and/or other technological developments or events may require you to purchase, lease, and/or obtain by license new or modified computer hardware and/or software and obtain service and support for the Computer System. The Franchise Agreement does not limit the frequency or cost of these changes, improvements, upgrades, or updates. We have no obligation to reimburse you for any Computer System costs. Within 60 days after you receive notice from us, you must obtain the components of the Computer System that we designate and ensure that your Computer System, as modified, is functioning properly.
We may charge you a reasonable fee for (i) installing, providing, supporting, modifying, and enhancing any proprietary software or hardware that we develop and license to you; and (ii) other Computer System-related maintenance and support services that we or our affiliates provide to you. If we or our affiliates license any proprietary software to you or otherwise allow you to use similar technology that we develop or maintain, then you must sign any software license agreement or similar instrument that we or our affiliates may require. There is currently no optional or required maintenance fees other that Computer System-related fees identified in Item
- However, the estimated annual expense in maintaining or replacing your computer system is $355 per year.
You will have sole responsibility for: (1) the acquisition, operation, maintenance, repairing and upgrading of your Computer System; (2) the manner in which your Computer System interfaces with our computer system and those of other third parties; and (3) any and all consequences that may arise if your Computer System is not properly operated, maintained and upgraded. Unless otherwise provided, we and are affiliates will have no responsibilities for these items.
We will have independent, unlimited access to the information the Computer System generates, stores and tracks, including any information pertaining to your gross revenues and all other information stored by the Computer System. There are no limitations on our ability to access the information and data. Client related health information may be protected by HIPPA if franchisees became covered entities.
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are required to purchase and use the computer hardware, software, and billing systems that Degree Wellness designates for operating their franchise. This Computer System will store and generate customer management, accounting, billing, and credit card information. Degree Wellness may modify the specifications and components of the Computer System periodically, potentially requiring franchisees to purchase, lease, or license new or modified hardware and software. Degree Wellness is not obligated to reimburse franchisees for these Computer System costs. Franchisees must obtain the designated components within 60 days of receiving notice from Degree Wellness and ensure the system functions properly.
Degree Wellness will have independent, unlimited access to the information generated, stored, and tracked by the Computer System, including gross revenues and all other stored information. There are no limitations on Degree Wellness's ability to access this data. However, client-related health information may be protected by HIPAA if franchisees become covered entities. Franchisees are solely responsible for the acquisition, operation, maintenance, repair, and upgrading of their Computer System, as well as ensuring it properly interfaces with Degree Wellness's system and those of third parties. They are also responsible for any consequences arising from improper operation, maintenance, or upgrades.
Failure to fully implement the designated Computer System, including required software, within acceptable timeframes will result in additional fees. If a franchisee has not "gone live" within two months after initial training, they will be required to pay $500 per month. If they have not gone live within six months, the fee increases to $1,000 per month. Degree Wellness also requires franchisees to maintain a dedicated high-speed internet service for remote access and information retrieval. Degree Wellness is not responsible or liable for any defects or deficiencies in the Computer System, its components, service providers, or required third-party software.
In summary, Degree Wellness franchisees must adhere to the franchisor's mandated computer system, maintain its functionality, and ensure accurate financial record-keeping through it. They must also grant Degree Wellness access to all data within the system, bearing the costs of updates and maintenance while facing penalties for non-compliance. Prospective franchisees should carefully consider these technological and financial obligations.