When is the Development Fee due to Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
,332 | | | | Investment | | | |
Multi-Unit Development
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Development Fee | $91,500 (2 Studios) $129,500 (3Studios) | Lump sum | Upon execution of Development Agreement | Us |
| Initial Investment to Open Initial/Single Studio | $298,987 to $747,832 | Totals from Single Unit Chart of this Item 7 less the Initial Franchise Fee. | ||
| Grand Total | $390,487 to $839,332 (2 Studios) $428,487 to $877,332 (3 Studios) | This is the total estimated initial investment to enter into a Development Agreement for the right to own a total of two to three, as well as the estimated initial costs to open and begin operating your initial Studio for the first three months (as described mor |
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 Development Fee is due upon the execution of the Development Agreement. The Development Fee itself varies depending on the number of studios a developer commits to opening. For two studios, the fee is $91,500, while for three studios, it amounts to $129,500. This fee is payable in a lump sum to Degree Wellness.
This means that a prospective franchisee looking to develop multiple Degree Wellness studios must be prepared to pay the full Development Fee upfront when signing the agreement. This is a significant initial investment, and franchisees should ensure they have the necessary capital available. Unlike some other fees that are incurred over time, this lump-sum payment represents an immediate financial obligation.
It's important to note that this fee grants the developer the right to open a specified number of Degree Wellness studios, but it does not cover the costs associated with opening each individual studio. The initial investment to open a single Degree Wellness studio ranges from $298,987 to $747,832, excluding the Initial Franchise Fee. Therefore, developers need to factor in both the Development Fee and the individual studio opening costs when planning their investment. Degree Wellness estimates the grand total investment for two studios to be between $390,487 and $839,332, and for three studios, between $428,487 and $877,332. These totals include the Development Fee and the initial costs to open the first studio.