What does the Grand Total initial investment for a Degree Wellness franchise include?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
TMENT YOUR ESTIMATED INITIAL INVESTMENT**
Single Studio
| 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 |
| Additional Funds (3 Months)(15) | Varies, but expected within first 3 months of operations | Business personnel; Landlord; Approved Suppliers; Third-Party Provider(s) and/or Providers; Utility Providers; Us; Etc. | |
|---|---|---|---|
| Total Estimated Initial | $348,487 to $797,332 | ||
| Investment |
Multi-Unit Development
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Development Fee | $91,500 (2 Studios) $129,500 (3Studios) | Lump sum | Upon execution of Development Agreement | Us |
| Initial Investment to Open Initial/Single Studio | $298,987 to $747,832 |
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 total estimated initial investment to open a single Degree Wellness studio ranges from $298,987 to $747,832. This investment encompasses various expenditures, including the franchise license fee, initial training fee, training program expenses, studio layout, architect, engineer, drawings, and permits, real estate and construction management fees, lease security deposit, initial equipment package, leasehold improvements, furniture, fixtures, and equipment (FFE), point of sale system, hardware, software and installation, initial inventory and supplies, professional fees and licenses, presale marketing, insurance, and exterior signage.
The initial franchise fee ranges from $49,500 to $49,500, while the initial training fee is $8,000. Training program expenses are estimated between $1,500 and $5,000. Studio layout, architect, engineer, drawings, and permits range from $19,250 to $21,500. The real estate and construction management fee is a flat $20,500. Lease security deposits (for 3 months) can range from $11,318 to $34,668. The initial equipment package is a significant investment, ranging from $13,620 to $145,709, and leasehold improvements range from $138,952 to $384,621. Furniture, fixtures, and equipment are estimated to cost between $29,629 and $40,019. The point of sale system, hardware, software, and installation costs range from $3,850 to $4,250. Initial inventory and supplies range from $9,531 to $11,092. Professional fees and licenses are estimated between $2,586 and $5,000. Presale marketing costs range from $12,000 to $15,458, insurance costs range from $1,023 to $2,340 and exterior signage costs range from $3,318 to $9,675.
Prospective franchisees should note that these costs do not include real estate purchase costs, owner compensation, or debt service. The FDD advises that actual costs may vary based on local economic conditions, material and labor availability, and other factors beyond Degree Wellness's control. Franchisees are encouraged to carefully review these figures with a business advisor, considering the anticipated costs in their specific market and whether additional cash reserves will be necessary.