What does Degree Wellness consider the estimated total initial investment expenses to cover?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To |
|---|---|---|---|---|
| Be Made | ||||
| Franchise License Fee (1) | $49,500 to $49,500 | Lump Sum | At signing of Franchise Agreement | Us |
| Initial Training Fee | $8,000 to $8,000 | Lump Sum | At signing of Franchise Agreement | Us |
| Training Program Expenses (2) | $1,500 to $5,000 | As agreed | As incurred | Third-party providers, including airline, lodging and meals. |
| Studio Layout, Architect, Engineer, Drawings, and Permits (3) | $19,250 to $21,500 | As agreed | As incurred | Approved Supplier and Third Party Providers |
| R/E & Construction Mgt | $20,500 to $20,500 | Lump Sum | As incurred | Approved Supplier |
| Fee (4) | ||||
| Lease - Security Deposit | $11,318 to $34,668 | As agreed | When securing the | Third Party Provider |
| (3 months) (5) | premises | |||
| Initial Equipment Package | $13,620 to $145,709 As agreed, invoiced or | As incurred | Approved Supplier | |
| (6) | arranged | |||
| Leasehold Improvements | $138,952 to $384,621 | As arranged | As invoiced | Third Party Provider |
| (7) | ||||
| Furniture, Fixtures, and | $29,629 to $40,019 | As agreed | As invoiced | Us and Approved Supplier |
| Equipment (FFE) (8) | ||||
| Point of Sale System, | $3,850 to $4,250 | As agreed | As incurred | Approved Supplier |
| Hardware, Software and | ||||
| Installation (9) | ||||
| Initial Inventory & | $9,531 to $11,092 | As agreed, invoiced or | As incurred | Approved Supplier |
| Supplies (10) | arranged | |||
| Professional Fees & | $2,586 to $5,000 | As agreed | As incurred | Approved Supplier |
| Licenses (11) | ||||
| Presale Marketing (12) | $12,000 to $15,458 | As agreed | Before opening | Third Party Provider |
| Insurance (13) | $1,023 to $2,340 | As agreed | As invoiced | Third Party Provider |
| Exterior Signage (14) | $3,318 to $9,675 | As agreed | As incurred | Approved Supplier |
Source: Item 7 — Estimated Initial Investment (FDD pages 22–26)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the estimated total initial investment expenses cover a range of costs associated with starting and operating a single Degree Wellness Studio franchise. These expenses include the franchise license fee, initial training fee, training program expenses, studio layout, architect, engineer, drawings, and permits. Additionally, the investment covers real estate and construction management fees, lease security deposits, the initial equipment package, leasehold improvements, furniture, fixtures, and equipment (FFE), point of sale system hardware and software, initial inventory and supplies, professional fees and licenses, presale marketing, insurance, and exterior signage. The estimated initial investment to open a single Degree Wellness studio ranges from $298,987 to $747,832, not including the initial franchise fee.
The FDD specifies that these estimates are based on Degree Wellness's experience with their studio franchises and current requirements. However, the actual investment may vary depending on the location of the franchise and current market conditions. The document also notes that the cost for purchasing real estate is not included in these estimates, which assume the franchisee will lease the location for the studio. Furthermore, the estimates do not account for owner or officer compensation, or debt service.
Prospective franchisees should carefully review these figures with a business advisor, considering local economic conditions, the availability of materials and labor, and other factors that could impact costs. It is also important to note that most expenses payable to Degree Wellness and third parties are non-refundable, except for utility deposits and other payments that may be arranged. Understanding the components of the initial investment and how they may vary is crucial for planning and securing adequate funding for a Degree Wellness franchise.