What expenses are included in 'Insurance' costs for a Degree Wellness studio?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Insurance means the actual amounts expended on insurance in the operation of the Studio.
| Studio 1 | % of Rev. | Studio 3 | % of Rev. | Studio 4 | % of Rev. | Average | % of Rev. Above/Below | Median | |
|---|---|---|---|---|---|---|---|---|---|
| Gross Revenue | 181,459 | 100.0% | 137,586 | 100.0% | 156,307 | 100.0% | 158,451 | 100.0% 1/2 | 156,307 |
| Cost of Goods Sold | 19,269 | 10.6% | 12,047 | 8.8% | 16,452 | 10.5% | 15,922 | 10.0% 2/1 | 16,452 |
| Gross Profit | 162,190 | 89.4% | 125,539 | 91.2% | 139,855 | 89.5% | 142,528 | 90.0% 1/2 | |
| Expenses | |||||||||
| Advertising & Marketing | 8,234 | 4.5% | 8,308 | 6.0% | 12,293 | 7.9% | 9,612 | 6.1% 1/2 | 8,308 |
| Insurance | 1,382 | 0.8% | 1,094 | 0.8% | 1,731 | 1.1% | 1,402 | 0.9% 1/2 | 1,382 |
| Studio 1 | % of Rev. | Studio 2 | % of Rev. | Average/Median | % of Rev. | |
|---|---|---|---|---|---|---|
| Gross Revenue | 738,070 | 100.0% | 482,725 | 100.0% | 610,397 | 100.0% |
| Cost of Goods Sold | 66,837 | 9.1% | 43,044 | 8.9% | 54,940 | 9.0% |
| Gross Profit | 671,233 | 90.9% | 439,682 | 91.1% | 555,457 | 91.0% |
| Expenses | ||||||
| Advertising & Marketing | 31,900 | 4.3% | 51,106 | 10.6% | 41,503 | 6.8% |
| Insurance | 5,275 | 0.7% | 3,412 | 0.7% | 4,343 | 0.7% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–63)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, 'Insurance' costs represent the actual amounts spent on insurance for operating the studio.
Item 19 includes a profit and loss statement for the calendar year 2024 for two affiliate-owned Degree Wellness locations. Studio 1 reported insurance expenses of $5,275, representing 0.7% of revenue. Studio 2 had insurance expenses of $3,412, also representing 0.7% of revenue. The average insurance expense for these two studios was $4,343, or 0.7% of revenue.
Additionally, Chart 2 in Item 19 discloses the historical performance of three affiliate-owned locations for the first quarter of 2025. For Studio 1, insurance expenses were $1,382, accounting for 0.8% of revenue. Studio 3 reported $1,094 in insurance expenses, which was 0.8% of revenue. Studio 4's insurance expenses were $1,731, representing 1.1% of revenue. The average insurance expense across these three studios was $1,402, or 0.9% of revenue.