What was the average Net Income Adjusted for investors across all Degree Wellness studios?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ational 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 1 | % of Rev. | Studio 3 | % of Rev. | Studio 4 | % of Rev. | Average | % of Rev. Above/Below | Median | |
|---|---|---|---|---|---|---|---|---|---|
| Gross Revenue | 181,459 | 100.0% | 137,586 | 100.0% | 156,307 | 100.0% | 158,451 | 100.0% 1/2 | 156,307 |
| Cost of Goods Sold | 19,269 | 10.6% | 12,047 | 8.8% | 16,452 | 10.5% | 15,922 | 10.0% 2/1 | 16,452 |
| Gross Profit | 162,190 | 89.4% | 125,539 | 91.2% | 139,855 | 89.5% | 142,528 | 90.0% 1/2 | |
| Expenses | |||||||||
| Advertising & Marketing | 8,234 | 4.5% | 8,308 | 6.0% | 12,293 | 7.9% | 9,612 | 6.1% 1/2 | 8,308 |
| Insurance | 1,382 | 0.8% | 1,094 | 0.8% | 1,731 | 1.1% | 1,402 | 0.9% 1/2 | 1,382 |
| Office Expenses | 2,649 | 1.5% | 3,248 | 2.4% | 2,866 | 1.8% | 2,921 | 1.8% 1/2 | 2,866 |
| Payroll Expenses | 27,191 | 15.0% | 25,280 | 18.4% | 29,034 | 18.6% | 27,169 | 17.1% 2/1 | 27,191 |
| Rent & Lease | 13,078 | 7.2% | 13,832 | 10.1% | 23,276 | 14.9% | 16,728 | 10.6% 1/2 | 13,832 |
| Repairs & Maintenance | 679 | 0.4% | 329 | 0.2% | -- | 0.0% | 336 | 0.2% 1/2 | 329 |
| Taxes | -- | 0.0% | -- | 0.0% | -- | 0.0% | -- | 0.0% | -- |
| Utilities | 3,866 | 2.1% | 2,920 | 2.1% | 6,188 | 4.0% | 4,325 | 2.7% 1/2 | 3,866 |
| Total Expenses | 57,079 | 31.5% | 55,011 | 40.0% | 75,389 | 48.2% | 62,493 | 39.4% 1/2 | 57,079 |
| Net Operating Income | 105,112 | 57.9% | 70,528 | 51.3% | 64,466 | 41.2% | 80,035 | 50.5% 1/2 | 70,528 |
| Estimated Fees | |||||||||
| Royalties | 12,702 | 7.0% | 9,631 | 7.0% | 10,941 | 7.0% | 11,092 | 7.0% 1/2 | 10,941 |
| Brand Fund | 1,815 | 1.0% | 1,376 | 1.0% | 1,563 | 1.0% | 1,585 | 1.0% 1/2 | 1,563 |
| Total Estimated Fees | 14,517 | 8.0% | 11,007 | 8.0% | 12,505 | 8.0% | 12,676 | 8.0% 1/2 | 12,505 |
| Net Income Adjusted, OO | 90,595 | 49.9% | 59,521 | 43.3% | 51,962 | 33.2% | 67,359 | 42.5% 1/2 | 59,521 |
| Studio Manager Payroll Expenses | 17,295 | 9.5% | 12,672 | 9.2% | 14,441 | 9.2% | 8,882 | 5.6% 3/0 | 14,441 |
| Net Income Adjusted, Investor | 73,300 | 40.4% | 46,849 | 34.1% | 37,520 | 24.0% | 58,477 | 36.9% 1/2 | 46,849 |
Explanatory Notes to Tables 1 and 2
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- Gross Sales means all gross receipts, less tips and sales tax and represents the amount upon which will base your Royalty Fee, Local Advertising Requirement and Fund Contribution under your Franchise Agreement with us.
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- COGS means all variable cost inputs to facilitate customer sales, including equipmentrelated consumables, medical supplies and other usage-based costs.
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- Gross Profit means Gross Sales less COGS.
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- Advertising and Marketing means the actual local marketing expenditures of the location. Your requirements will include $12,000 of Presale Marketing and an annual Local Marketing Requirement of $2500 per month ($30,000 per year).
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- Insurance means the actual amounts expended on insurance in the operation of the Studio.
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- Office Expenses means general cleaning supplies/services, office supplies, postage, and software.
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- Payroll Expenses means all hourly and salaried labor excluding general managers, including based wages, payroll taxes, and benefits. This definition excludes the cost of multi-unit managers.
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- Rent and Lease means base rent and all related NNN (triple net) costs, including common area maintenance, insurance, and tax-related obligations under the Lease.
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- Repairs and Maintenance means all standard maintenance items, including HVAC maintenance, electrical maintenance, necessary repair items, and any equipment repairs.
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- Taxes means all taxes, including property taxes, incurred in the operation of the Studio.
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- Utilities means the following utility expenses electric, water, power, internet and phone.
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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 average Net Income Adjusted for investors across three studios (Studio 1, Studio 3, and Studio 4) for the first quarter of 2025 was $52,762. Studio 1 had a Net Income Adjusted for investors of $73,300, Studio 3 had $46,849 and Studio 4 had $37,520. Net Income Adjusted for investors is defined as Net Income Adjusted for an owner-operator less the costs associated with a general manager. This metric is intended to show the income of the studio if the franchisee was an investor.
For the 2024 calendar year, the average Net Income Adjusted for investors across two studios (Studio 1 and Studio 2) was $183,424. Studio 1 had a Net Income Adjusted for investors of $283,537, while Studio 2 had $83,311. It is important to note that Studio 2 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.
It is important to remember that these figures are based on affiliate-owned locations and that a franchisee's individual results may vary. The FDD states that there is no assurance that a franchisee will sell as much as the affiliate locations. Prospective franchisees should carefully consider these figures and conduct their own due diligence before investing in a Degree Wellness franchise.