In Washington, how are development fees and payments collected by Degree Wellness area developers?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Washington Securities Division requires financial assurance due to the franchisor's financial condition. This condition mandates the deferral of payments. Specifically, Item 5 is supplemented to reflect this requirement.

This means that in Washington, Degree Wellness defers the collection of development fees and initial payments from area developers. These fees and payments are not collected until the first franchise under the development agreement opens. This arrangement is designed to provide financial assurance to developers, mitigating risks associated with the franchisor's financial stability.

This deferral of fees could be advantageous for Degree Wellness area developers in Washington, as it reduces their upfront financial burden. However, it's important for prospective developers to understand the specific conditions and implications of this deferral, including how it might affect their development timeline and overall investment strategy. They should also seek clarification from Degree Wellness regarding the details of the financial assurance requirements and how they are being met.