Is the Degree Wellness Development Fee refundable, and under what circumstances?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Fee does not include the fee to purchase our optional programs with your franchise. The Development Fee is fully earned by us when paid and is not refundable in whole or in part under any circumstances.
Initial Training Fee
Source: Item 5 — Initial Fees (FDD pages 13–14)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Development Fee is not refundable under any circumstances. The FDD states that the Development Fee is fully earned by Degree Wellness when paid. This means that once a franchisee pays the Development Fee, they cannot get a refund, regardless of whether they successfully open the multiple studios they were granted the right to open under the Development Agreement.
The Development Fee is a one-time fee paid when a franchisee is granted the right to open multiple Degree Wellness studios under a Development Agreement. The amount of the Development Fee depends on the number of studios the franchisee is granted the right to open. For example, the Development Fee is $91,500 for the right to open 2 studios, $129,500 for 3 studios, $165,500 for 4 studios, and $199,500 for 5 studios. For the right to open between 6 and 10 studios, the Development Fee is $32,000 per unit.
Prospective Degree Wellness franchisees should carefully consider this non-refundable policy before entering into a Development Agreement. It is important to have a solid business plan and secure financing before paying the Development Fee, as there is no guarantee of a refund if the franchisee is unable to open the studios. This is a fairly standard practice in franchising, as initial fees are typically non-refundable to compensate the franchisor for their initial investment in setting up the franchisee.