How often are Degree Wellness advertising fund contributions payable?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, contributions to the advertising fund are payable weekly. These payments are due at the same time as the continuing franchise fees. The advertising fund contribution is 1% of the franchise's gross revenues. Degree Wellness retains the right to modify the required contribution with 60 days' advance notice; however, the contribution will never exceed 2% of gross revenue during the agreement term.
This weekly payment schedule means that franchisees must consistently monitor their gross revenues to calculate the advertising fund contribution accurately. This also requires franchisees to maintain a steady cash flow to meet these frequent obligations. Failing to remit these payments weekly could result in penalties or a breach of the franchise agreement.
Prospective franchisees should consider the impact of weekly payments on their operational cash flow and financial planning. Understanding the mechanisms for reporting gross revenues and making these payments is crucial for maintaining compliance with the Degree Wellness franchise agreement. Additionally, franchisees should stay informed about any potential changes to the contribution rate, ensuring they are prepared for adjustments with the required 60-day notice.