When is the Degree Wellness Development Fee due if a Development Agreement is granted?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
r any circumstances.
Development Fee
If we grant you the right to open multiple Studios under a Development Agreement, you must pay us a one-time Development Fee immediately upon execution of your Development Agreement. Your Development Fee will depend on the number of Studios we grant you the right to open within the Site Selection Area and is calculated as follows:
| Number of Franchised Studios | Development Fee | |---|---| | 2 Studios | $91,500 | | 3 Studios | $129,500 | | 4 Studios | $165,500 | | 5 Studios | $199,500 | | 6 through 10 Studios | $32,000 per unit | You will be required to enter into our then-current form of Franchise Agreement for each Studio you wish to open under your Development Agreement, but you will not be required to pay any additional Initial Franchise Fee at the time you execute each of these Franchise Agreements. You will execute our current form of Franchise Agreement for the first Studio we grant you the right to open within your Development Area concurrently with the Development Agreement (unless we agree otherwise in writing).
The Development Fee does not include the fee to purchase our optional programs with your franchise.
Source: Item 5 — Initial Fees (FDD pages 13–14)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if Degree Wellness grants a Development Agreement, the Development Fee is due immediately upon execution of the Development Agreement. The Development Fee is a one-time fee that depends on the number of studios the agreement allows the franchisee to open within a specific Site Selection Area.
For example, the Development Fee for the right to open 2 studios is $91,500, while the fee for 3 studios is $129,500. The fee increases to $165,500 for 4 studios and $199,500 for 5 studios. For Development Agreements granting the right to open between 6 and 10 studios, the Development Fee is $32,000 per unit.
The Development Fee is fully earned by Degree Wellness when paid and is non-refundable under any circumstances. However, if a franchisee qualifies for the VetFran program, they will receive a $2,500 reduction in either the Development Fee or the Initial Franchise Fee for their first franchise. All initial fees and expenditures are uniformly calculated and imposed on franchisees, payable in a lump sum, and deemed fully earned upon receipt.