Does Degree Wellness receive revenue or other consideration from suppliers for goods or services that franchisees are required or advised to obtain?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
r owns any interest in any supplier.
Our Involvement with Suppliers
We and our affiliates and designees reserve the right to receive revenue or other material consideration from suppliers in consideration for other goods or services that we require or advise you to obtain from approved suppliers.
We negotiate price terms and other purchase arrangements with suppliers for you for some items that we require or suggest you to lease or purchase in developing and operating your Degree Wellness franchise, including clothing, marketing materials, services, and equipment. There currently are no purchasing and distribution cooperatives.
Medical Purchases
The corporate practice of medicine doctrine restricts layperson-franchisees from determining the medical equipment and supplies to be used in the operation of the medical services provided in the Studio.
Effects of Compliance and Noncompliance
We do not provide any other benefits to you because of your use of designated or approved services and products, or suppliers.
Revenue We Derive From Franchisee Purchases
We do not currently derive revenue from Franchisee purchases but we reserve the right to in the future. As such for the year ending December 31, 2025, we received $0 from Franchisee purchases, which is 0% of our total revenue of $0. For the year ending December 31, 2025, our affiliate DW Financial received $0 from Franchisee purchases, which is 0% of its total revenue of $0.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness and its affiliates reserve the right to receive revenue or other material consideration from suppliers for goods or services that franchisees are required or advised to obtain from approved suppliers. Degree Wellness negotiates price terms and other purchase arrangements with suppliers for franchisees for some items that Degree Wellness requires or suggests franchisees lease or purchase in developing and operating their Degree Wellness franchise, including clothing, marketing materials, services, and equipment.
As of the FDD date, Degree Wellness states that it does not currently derive revenue from franchisee purchases, but reserves the right to do so in the future. For the year ending December 31, 2025, Degree Wellness received $0 from franchisee purchases, which is 0% of its total revenue of $0. For the year ending December 31, 2025, Degree Wellness's affiliate DW Financial received $0 from franchisee purchases, which is 0% of its total revenue of $0.
Degree Wellness also requires franchisees to use third parties contracted by Degree Wellness to provide website design, maintenance, hosting, and search engine optimization. Franchisees will pay Degree Wellness a fee for such services, and Degree Wellness will pay the third-party providers directly. The amount franchisees pay Degree Wellness may be less or more than the amount Degree Wellness pays to the third-party providers and may be used to offset internal costs related to the stated purposes of this fee. This arrangement is common in franchising, where franchisors often negotiate with suppliers and may receive rebates or other considerations. Franchisees should inquire about the specific amounts Degree Wellness receives and how these arrangements benefit the franchisees.