Who has the sole discretion regarding the collection methods and settling of disputes for Degree Wellness fees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
It is expressly understood that the extent to which Staffer will endeavor to collect such fees, the methods of collecting, the settling of disputes with respect to charges and the writing off of fees that may be or appear to be uncollectible shall at all times be at the sole discretion of Staffer, and Staffer does not guarantee the extent to which any fees billed will be collected. Group or Group's duly authorized agent shall have the right at all reasonable times and upon the giving of reasonable notice to examine, inspect and copy the records of Staffer pertaining to such fees, charges, billings, costs and expenses.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Staffer has the sole discretion regarding the collection of fees. Specifically, Staffer determines the extent to which they will try to collect fees, the methods used for collection, and the settling of disputes related to charges. Staffer also has the authority to write off fees that may be or appear to be uncollectible. Staffer does not guarantee that all fees billed will be collected.
This arrangement means that Degree Wellness franchisees rely on Staffer's judgment and expertise in managing the financial aspects of the professional services provided. While this can be beneficial by outsourcing these tasks, franchisees should understand that they have limited control over the collection process and the potential for uncollected fees.
Degree Wellness franchisees have the right to examine, inspect, and copy Staffer's records related to fees, charges, billings, costs, and expenses. This access allows franchisees to monitor the collection process and ensure transparency. It is important for franchisees to regularly review these records to stay informed about the financial performance of their location and to address any concerns with Staffer promptly.
Prospective Degree Wellness franchisees should carefully consider the implications of this arrangement and discuss with the franchisor the typical collection rates, the criteria used for writing off uncollectible fees, and the process for resolving disputes related to charges. Understanding these aspects will help franchisees assess the potential financial risks and benefits associated with this franchise opportunity.