What was the average Studio Manager Payroll Expenses for 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
-
- 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.
-
- COGS means all variable cost inputs to facilitate customer sales, including equipmentrelated consumables, medical supplies and other usage-based costs.
-
- Gross Profit means Gross Sales less COGS.
-
- 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).
-
- Insurance means the actual amounts expended on insurance in the operation of the Studio.
-
- Office Expenses means general cleaning supplies/services, office supplies, postage, and software.
-
- 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.
-
- 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.
-
- Repairs and Maintenance means all standard maintenance items, including HVAC maintenance, electrical maintenance, necessary repair items, and any equipment repairs.
-
- Taxes means all taxes, including property taxes, incurred in the operation of the Studio.
-
- Utilities means the following utility expenses electric, water, power, internet and phone.
-
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–63)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Chart 2 discloses the historical performance of three affiliate-owned locations for the first quarter of 2025. The average Studio Manager Payroll Expenses for these locations was $8,882. Studio 1 had Studio Manager Payroll Expenses of $17,295, Studio 3 had expenses of $12,672 and Studio 4 had expenses of $14,441.
Chart 1 discloses the historical performance of two affiliate-owned locations for the entire 2024 calendar year. The average Studio Manager Payroll Expenses for these locations was $56,041. Studio 1 had Studio Manager Payroll Expenses of $61,096 and Studio 2 had expenses of $50,986.
It's important to note that these figures represent the performance of affiliate-owned locations, and the FDD explicitly states that individual results may vary. There is no assurance that a franchisee will achieve the same level of sales or manage payroll expenses in the same manner. The document also specifies that Studio 2 is different from the others because 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.
Prospective franchisees should consider these figures as benchmarks and conduct their own due diligence, including market research and financial planning, to determine the potential profitability of a Degree Wellness franchise in their specific location. It is also advisable to discuss these figures with existing Degree Wellness franchisees to gain a better understanding of their experiences and financial performance.