What factors impact the cost to lease a premises for a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Your cost to lease is difficult to quantify because there are factors that will impact what you pay.
These factors include the facility's location, its square footage, cost-per-square foot, renovation costs and any required maintenance fees.
Your landlord may refund your security deposit, but most will not refund rental payments.
You should ask your leasing agent or landlord about their refund policy before you sign a lease agreement.
Source: Item 7 — Estimated Initial Investment (FDD pages 22–26)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, several factors can influence the cost of leasing a premises for your studio. The document states that these factors include the facility's location, its square footage, the cost per square foot, any renovation costs, and required maintenance fees. The FDD indicates that Degree Wellness expects the premises to be between 1,800 and 2,400 square feet. The initial investment table estimates a lease security deposit of $11,318 to $34,668 for three months.
The FDD also notes that the landlord might refund the security deposit, but typically rental payments are non-refundable. It advises prospective franchisees to inquire about the landlord's refund policy before signing a lease agreement. The document also mentions the possibility of receiving tenant improvement allowances or credits from the landlord, which can be used towards the buildout of the franchised business or other leasehold improvements.
Furthermore, the FDD includes an estimated range for leasehold improvements, which are expenses to improve the premises according to brand-specific standards. In Degree Wellness's recent experience with affiliate locations, these costs have ranged from $143,332 to $252,603. The increased high cost is intended to compensate for increases in inflation and market variation. The document emphasizes that individual markets may vary, and the actual costs will depend on various factors, including prevailing labor rates and other demographics of the area surrounding the premises, along with the actual premises itself.