What is the '2024 Measurement Period' used in the Degree Wellness financial performance representation?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Chart 1 discloses the historical performance of each affiliate-owned location that was open for the entire 2024 calendar year (the "2024 Measurement Period"). The studio labelled Studio 1 has the same financial and operational characteristics as a those being offered pursuant to this disclosure document and do not otherwise materially differ from what you would operate as a franchisee. Studio 2 however, although it operated under the same trademarks, is unable to offer several key services and features. Namely, it does not offer contrast therapy or cold plunge, and it does not have showers. Studio 2 is being relocated to a new site in order to offer these services. As of the issuance date of this Disclosure document Studio 2 has terminated its original lease and entered into a new lease. However, it has not yet completed its relocation.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–63)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the '2024 Measurement Period' refers to the entire 2024 calendar year. Degree Wellness uses this period to disclose the historical performance of its affiliate-owned locations. Specifically, Chart 1 in Item 19 presents the profit and loss information for each affiliate-owned location that was open for the complete 2024 calendar year.
Degree Wellness highlights that Studio 1, among the disclosed locations, shares similar financial and operational characteristics to the franchise opportunity being offered. However, Studio 2 differs as it does not offer contrast therapy or cold plunge and lacks showers. This distinction is important for prospective franchisees to consider when evaluating the financial performance data, as the services offered can impact revenue and operational costs.
It's also worth noting that the FDD mentions that the disclosed affiliate locations, including those used in the 2024 Measurement Period, are located in Jacksonville, Florida, or the surrounding area. Degree Wellness states that the brand has garnered goodwill and reputation in this region over the years. Furthermore, Studio 1 and Studio 2 were already open at the start of 2024, meaning the profit and loss information does not reflect initial startup costs. Therefore, a new franchisee might incur startup costs that are not reflected in the historical data.