Under what conditions would a Degree Wellness franchisee be required to pay a daily training fee?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement or promptly after receiving notice from us about our requirement for your to sign the Service Agreement. [The terms and conditions of any such Service Agreement are hereby incorporated herein by reference (the "Additional Terms and Conditions"). A copy of any such Service Agreement shall be attached to this Agreement as Exhibit 4.]
- c. Your full implementation of our computer system and software requirements, including our designated billing system, is a crucial part of your Studio's start-up and operation, and you and we agree that the Computer System requirements are a top priority. Accordingly, if you do not fully implement our designated Computer System, including required software (called "going live") within acceptable timeframes, you will be required to pay additional fees to us, as follows:
- o If you have not "gone live" within two (2) months after the conclusion of your initial training program, you will be required to pay a fee of $500.00 per month for each month thereafter, due and payable on the first (1st) day of each calendar month in such period with no pro-rations for partial months; and
- o If you have not "gone live" within six (6) months, the fee will be increased to $1,000.00 per month commencing within the sixth (6th) month after the conclusion of the initial training program.
Nothing in this paragraph shall prohibit us from exercising our rights and remedies under Section 15 or any other provision of this Agreement.
- Degree Wellness also requires you to maintain a dedicated high-speed internet service or connection or other communication means for remote access and information retrieval by us, as we may specify from time to time in the Operations Manual or otherwise in writing.
- e. We are not responsible or liable for any actual, alleged, or perceived defects or deficiencies in the Computer System, any components thereof, Service Provider(s), or any required third-party software, or the performance of any of the forgoing.
- 3.5 Equipment, Furniture, Fixtures, Furnishings and Signs. You agree to use in the development and operation of the Franchise only those brands, types, and/or models of equipment, furniture, fixtures, furnishings, and signs we have approved.
- 3.6 Franchise Opening.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee does not pay a daily training fee. However, if a Degree Wellness franchisee does not fully implement the designated computer system, including the required software, within acceptable timeframes, they will be required to pay additional fees. If the franchisee has not "gone live" within two months after the conclusion of the initial training program, they will be required to pay a fee of $500 per month. If the franchisee has not "gone live" within six months after the conclusion of the initial training program, the fee increases to $1,000 per month. These fees are due and payable on the first day of each calendar month, with no pro-rations for partial months.
These fees are designed to ensure that franchisees prioritize the implementation of the computer system, which Degree Wellness considers crucial for the studio's start-up and operation. The fees serve as a financial incentive for franchisees to meet the required deadlines for system implementation. However, Degree Wellness retains the right to exercise other rights and remedies under the agreement, in addition to these fees.
Furthermore, Degree Wellness reserves the right to offer and hold additional ongoing training programs and franchise owners meetings. They may charge a reasonable tuition for these additional courses, seminars, or other training programs, and the franchisee agrees to pay such tuition. Additionally, the franchisee is responsible for all training-related costs and expenses including, without limitation, salary, travel, lodging, and dining costs for all of their employees who participate in the training. If Degree Wellness provides additional onsite training, the franchisee agrees to pay a reasonable tuition fee for such assistance as well as related travel, lodging, and dining costs.
Prospective franchisees should carefully consider these potential fees and ensure they have a plan to implement the computer system promptly to avoid incurring additional costs. They should also budget for ongoing training expenses for themselves and their employees to maintain compliance with Degree Wellness's standards and best practices.