What is the expected security deposit amount for a Degree Wellness franchise premises?
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 |
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 security deposit for the lease of the premises ranges from $11,318 to $34,668. This estimate is based on the expectation that the premises will be between 1,800 and 2,400 square feet in size. Degree Wellness expects the security deposit to be equivalent to three months' rent. The security deposit is paid to a third-party provider when securing the premises.
Factors such as the facility's location, square footage, cost per square foot, renovation costs, and any required maintenance fees can impact the actual cost to lease the premises. The landlord may or may not refund the security deposit, so Degree Wellness advises prospective franchisees to inquire about the landlord's refund policy before signing a lease agreement.
It's important to note that these figures are estimates and can vary depending on the specific location and market conditions. Prospective franchisees should carefully review these figures with their business advisor and conduct thorough research on local market conditions to determine accurate start-up expenses.