What is the estimated range for Degree Wellness leasehold improvements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
own, ate a rate of prime plus 7%, for a five year period. See Item 8 and Item 10 for additional information. These figures do not include any proposed tariffs that could significantly impact the price of imported goods.
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- Leasehold Improvements. These are expenses to improve the Premises of your Studio in accordance with brand-specific standards. In our recent experience with affiliate locations, our low costs have been $143,332 and our high costs have been $252,603. The disclosed increased high cost is intended to compensate for increases in inflation and market variation. Your individual markets may vary. These projections assume the space is being leased. If you elect to own your own location, additional costs will be incurred. Impact fees vary in each jurisdiction (if and as applicable), which will vary state-by-state. We encourage you to research the fee structure in your jurisdiction. This range is based on our standard franchise offering's expectation that your Premises will be between 1,800 and 2,400 square feet and will otherwise meet our System standards and specifications. The
actual costs you incur will depend on various factors, including prevailing labor rate and other demographics of the area surrounding your Premises, along with the actual Premises itself. You may get certain tenant improvement allowances or credits from your landlord that will be used towards your buildout of the Franchised Business and/or other leasehold improvements. The high end of our estimated range above accounts for certain tenant improvement allowances in the estimate based on the experience of our affiliates in opening their respective System Studio(s). The high end was based on a premises that was a "Dark Shell" as compared to the low end which was considered a "White Box". Although the both the high and the low end received tenant improvement allowances, the low end does not reflect a reduction due to the allowances received.
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- FFE. This estimated range is designed to cover the furniture, certain fixtures and operational equipment you will be required to purchase before (a) we provide any on-site training in connection with your franchise,
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 cost for leasehold improvements ranges from $138,952 to $384,621. These expenses cover the costs to improve the premises of the Degree Wellness studio to meet the brand's specific standards. These projections assume that the franchisee is leasing the space. If a franchisee chooses to own the location, they will incur additional costs.
The FDD notes that the actual costs may vary depending on factors such as prevailing labor rates and demographics in the area surrounding the premises, as well as the condition of the premises itself. Franchisees may also receive tenant improvement allowances or credits from their landlord, which can be used towards the buildout of the franchised business and/or other leasehold improvements. The high end of the estimated range accounts for certain tenant improvement allowances based on the experience of Degree Wellness's affiliates in opening their studios. The high end was based on a premises that was a "Dark Shell" as compared to the low end which was considered a "White Box". Although the both the high and the low end received tenant improvement allowances, the low end does not reflect a reduction due to the allowances received.
Prospective Degree Wellness franchisees should carefully consider these factors and research the fee structure in their jurisdiction to accurately estimate their potential leasehold improvement costs. Understanding the difference between a "Dark Shell" and a "White Box" premises is also crucial, as this significantly impacts the buildout expenses. Additionally, franchisees should investigate potential tenant improvement allowances from landlords to help offset these costs. The FDD indicates that in Degree Wellness's recent experience with affiliate locations, low costs have been $143,332 and high costs have been $252,603. The disclosed increased high cost is intended to compensate for increases in inflation and market variation, but individual markets may vary.