Can Degree Wellness use the Technology Fee to offset internal costs?

Based on the 2025 FDD, the Technology Fee that Degree Wellness franchisees are required to pay monthly is designated for specific purposes. According to Paragraph 6.4, this fee covers certain Website and technology-related services and expenses, as well as fees relating to required human resources and payroll services.

The FDD does not provide explicit details on whether Degree Wellness can use the Technology Fee to offset internal costs unrelated to website, technology, human resources, and payroll services. The language specifies that the fee is for "certain Website and technology-related services and expenses and any fees relating to the required human resources and payroll services," implying a limited scope.

A prospective Degree Wellness franchisee should seek clarification from the franchisor regarding the specific allocation of the Technology Fee and whether any portion of it may be used to cover general internal costs beyond the stated services and expenses. Understanding the full scope of how this fee is utilized is crucial for assessing the overall financial obligations and potential profitability of the franchise.