When is the development fee due to Degree Wellness for a multi-unit development agreement?
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 for a multi-unit development agreement is due upon the execution of the Development Agreement. The fee varies depending on the number of studios a franchisee commits to developing. For two studios, the development fee is $91,500, while for three studios, it is $129,500. This fee is paid in a lump sum to Degree Wellness.
This upfront payment grants the franchisee the right to develop multiple Degree Wellness studios, as opposed to a single franchise agreement. It's important to note that this fee is separate from the initial investment required to open 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.
Prospective franchisees should carefully consider their financial capacity and development plans before entering into a multi-unit development agreement with Degree Wellness. The total estimated initial investment, including the development fee and the cost to open the initial studio, ranges from $390,487 to $839,332 for two studios, and from $428,487 to $877,332 for three studios. These figures highlight the significant financial commitment required for multi-unit development.
Understanding the payment schedule and the non-refundable nature of the development fee is crucial for potential Degree Wellness multi-unit franchisees. It is advisable to consult with financial and legal advisors to assess the risks and benefits associated with such an agreement before making any commitments.