What factors can cause the actual initial investment for a Degree Wellness Studio to vary?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
it Franchise" chart above). | | |
Explanatory Notes:
General. The preceding chart and accompanying notes describe the estimated total initial investment expenses to obtain and commence business for a single Degree Wellness Studio franchise. These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating a single Degree Wellness Studio. Unless negotiated with a third-party, non-affiliated vendor, all payments disclosed in this Item are non-refundable.
Our estimates are based on our experience with our Studio franchises and our current requirements for Studios. The factors underlying our estimates may vary depending on a number of variables, and the actual investment you make in developing and opening your Degree Wellness Studio franchise may be greater or less than the estimates given depending upon the location of your franchise, and current relevant market conditions.
Your estimated initial investment for each additional Studio you purchase may be lower if we charge a reduced Initial Franchise Fee. See Item 5 for additional information. See Item 10 for additional information regarding any financing options. All expenses payable to us and third parties are non-refundable, except as you may arrange for utility deposits and other payments. (3 Months)
- Initial Franchise Fee; Initial Training Fee. The Initial Franchise Fee and Initial Training Fee that are payable in a lump sum upon execution of your Franchise Agreement is
- disclosed more fully in Item 5, and is deemed fully earned and non-refundable upon payment.
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- Training Program Expenses. These are the costs that we estimate for you and up to one (1) additional person to attend the portion of our Initial Training Program that takes place at a corporate training location (currently Michigan). In addition to the Initial Training Fee, you are responsible for the costs associated with attending training. These costs include transportation, meals, and lodging. Your total cost will vary based on who you choose to attend, how far they have to travel, and the type of accommodations you choose. These costs are typically non-refundable, but you should ask about refund policies before you patronize any vendor.
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- Studio Layout, Architect, Engineer, Drawings, and Permits. This range includes our required Architect's fee for your Studio's complete construction drawings as well as any construction permits. Such permits can vary widely in cost depending on your location.
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- Real Estate and Construction Management Services. Our standard franchise offering expects and assumes that you will use our third-party Approved Supplier, for real estate and construction project management services for the construction and buildout of your Franchised Business.
- 5. Lease - Security Deposit.
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 actual initial investment for a Degree Wellness Studio can vary based on several factors. The FDD states that the estimates provided are based on the company's experience with existing Studio franchises and current requirements. However, the actual investment may be greater or less than the estimates due to the location of the franchise and current relevant market conditions. This suggests that real estate costs, local labor rates, and the availability of materials can all influence the total initial investment.
Specifically, the cost to lease a location can vary depending on the facility's location, square footage (with the standard franchise offering expecting premises between 1,800 and 2,400 square feet), cost per square foot, renovation costs, and any required maintenance fees. The cost of construction permits can also vary widely depending on the location. Additionally, the terms for financing the initial equipment package will depend on the franchisee's credit history and score. The FDD also notes that proposed tariffs could significantly impact the price of imported goods, further affecting the initial investment.
Furthermore, the cost of leasehold improvements can vary based on prevailing labor rates and other demographics of the area surrounding the premises, as well as the condition of the premises itself (e.g., whether it is a "Dark Shell" or a "White Box"). Exterior signage costs can also fluctuate depending on local requirements and regulations. Finally, the amount of additional funds needed to cover operating expenses, including employee salaries and local marketing for three months, can vary based on local economic conditions and the availability of materials and labor. These estimates also do not take into account finance payments, charges, interest, and related costs if any portion of the initial investment is financed by a third party.