Are Degree Wellness-owned studios required to contribute to the advertising fund?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
11.1 By Degree Wellness. As stated in Paragraph 6.3a, due to the importance of promoting the public image of Degree Wellness Studio franchises, we will establish, maintain, and administer the Fund to support and pay for national, regional, or local marketing and promotional programs that we deem necessary, desirable, or appropriate, in our sole discretion, to promote the good will and image of all Degree Wellness Studio franchises. You will contribute to the Fund in the amount set forth in Section 6.3a. We agree that any Studios owned by us or our affiliates will be required to contribute to the Fund on at least the same basis as you do, subject only to limitation under applicable law.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness-owned studios are required to contribute to the advertising fund. The FDD states that Degree Wellness or its affiliates will contribute to the advertising fund on at least the same basis as franchisees. This obligation is subject to limitations under applicable law.
The advertising fund is used to support national, regional, or local marketing and promotional programs that Degree Wellness deems necessary to promote the goodwill and image of all Degree Wellness Studio franchises. Degree Wellness has sole discretion over the advertising programs, including creative concepts, materials, and media used, as well as the geographic, market, and media placement and allocation of the programs.
Franchisees are required to contribute to the fund, with the amount set at one percent (1%) of the gross revenues of the franchise. This contribution is payable weekly, along with the continuing franchise fees. The FDD specifies that at no time will the contribution to the fund exceed 2% of gross revenue. This ensures that Degree Wellness-owned studios and franchised locations contribute to the advertising fund on a fair and consistent basis, helping to maintain a unified brand image and marketing effort.