What is the expected range for the Lease - Security Deposit for a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To |
|---|---|---|---|---|
| Be Made | ||||
| Franchise License Fee (1) | $49,500 to $49,500 | Lump Sum | At signing of Franchise Agreement | Us |
| Initial Training Fee | $8,000 to $8,000 | Lump Sum | At signing of Franchise Agreement | Us |
| Training Program Expenses (2) | $1,500 to $5,000 | As agreed | As incurred | Third-party providers, including airline, lodging and meals. |
| Studio Layout, Architect, Engineer, Drawings, and Permits (3) | $19,250 to $21,500 | As agreed | As incurred | Approved Supplier and Third Party Providers |
| R/E & Construction Mgt | $20,500 to $20,500 | Lump Sum | As incurred | Approved Supplier |
| Fee (4) | ||||
| Lease - Security Deposit | $11,318 to $34,668 | As agreed | When securing the | Third Party Provider |
| (3 months) (5) | premises | |||
| Initial Equipment Package | $13,620 to $145,709 As agreed, invoiced or | As incurred | Approved Supplier | |
| (6) | arranged | |||
| Leasehold Improvements | $138,952 to $384,621 | As arranged | As invoiced | Third Party Provider |
| (7) | ||||
| Furniture, Fixtures, and | $29,629 to $40,019 | As agreed | As invoiced | Us and Approved Supplier |
| Equipment (FFE) (8) | ||||
| Point of Sale System, | $3,850 to $4,250 | As agreed | As incurred | Approved Supplier |
| Hardware, Software and | ||||
| Installation (9) | ||||
| Initial Inventory & | $9,531 to $11,092 | As agreed, invoiced or | As incurred | Approved Supplier |
| Supplies (10) | arranged | |||
| Professional Fees & | $2,586 to $5,000 | As agreed | As incurred | Approved Supplier |
| Licenses (11) | ||||
| Presale Marketing (12) | $12,000 to $15,458 | As agreed | Before opening | Third Party Provider |
| Insurance (13) | $1,023 to $2,340 | As agreed | As invoiced | Third Party Provider |
| Exterior Signage (14) | $3,318 to $9,675 | As agreed | As incurred | Approved Supplier |
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 initial investment for the Lease - Security Deposit ranges from $11,318 to $34,668. This cost is typically paid when securing the premises and is payable to a third-party provider. The FDD indicates that this estimate is based on a security deposit amounting to one month's rent, based on the franchisor's affiliates' recent experience opening an affiliate-owned studio. Degree Wellness expects the premises to be between 1,800 and 2,400 square feet.
The document also notes that the actual cost to lease can vary significantly based on factors such as the facility's location, square footage, cost per square foot, renovation costs, and any required maintenance fees. These factors can influence the security deposit amount required by the landlord.
Prospective Degree Wellness franchisees should confirm the refund policy for security deposits with the leasing agent or landlord before signing any lease agreement. Understanding these terms is crucial, as most landlords will not refund rental payments, but the security deposit may be refundable depending on the lease terms and local regulations. Franchisees should also consider these figures as estimates and research local market conditions to anticipate potential variances in leasing costs.