What was the median Net Operating Income for Degree Wellness studios?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ational characteristics as a those being offered pursuant to this disclosure document and do not otherwise materially differ from what you would operate as a franchisee.
| 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 |
| Office Expenses | 2,649 | 1.5% | 3,248 | 2.4% | 2,866 | 1.8% | 2,921 | 1.8% 1/2 | 2,866 |
| Payroll Expenses | 27,191 | 15.0% | 25,280 | 18.4% | 29,034 | 18.6% | 27,169 | 17.1% 2/1 | 27,191 |
| Rent & Lease | 13,078 | 7.2% | 13,832 | 10.1% | 23,276 | 14.9% | 16,728 | 10.6% 1/2 | 13,832 |
| Repairs & Maintenance | 679 | 0.4% | 329 | 0.2% | -- | 0.0% | 336 | 0.2% 1/2 | 329 |
| Taxes | -- | 0.0% | -- | 0.0% | -- | 0.0% | -- | 0.0% | -- |
| Utilities | 3,866 | 2.1% | 2,920 | 2.1% | 6,188 | 4.0% | 4,325 | 2.7% 1/2 | 3,866 |
| Total Expenses | 57,079 | 31.5% | 55,011 | 40.0% | 75,389 | 48.2% | 62,493 | 39.4% 1/2 | 57,079 |
| Net Operating Income | 105,112 | 57.9% | 70,528 | 51.3% | 64,466 | 41.2% | 80,035 | 50.5% 1/2 | 70,528 |
| Estimated Fees | |||||||||
| Royalties | 12,702 | 7.0% | 9,631 | 7.0% | 10,941 | 7.0% | 11,092 | 7.0% 1/2 | 10,941 |
| Brand Fund | 1,815 | 1.0% | 1,376 | 1.0% | 1,563 | 1.0% | 1,585 | 1.0% 1/2 | 1,563 |
| Total Estimated Fees | 14,517 | 8.0% | 11,007 | 8.0% | 12,505 | 8.0% | 12,676 | 8.0% 1/2 | 12,505 |
| Net Income Adjusted, OO | 90,595 | 49.9% | 59,521 | 43.3% | 51,962 | 33.2% | 67,359 | 42.5% 1/2 | 59,521 |
| Studio Manager Payroll Expenses | 17,295 | 9.5% | 12,672 | 9.2% | 14,441 | 9.2% | 8,882 | 5.6% 3/0 | 14,441 |
| Net Income Adjusted, Investor | 73,300 | 40.4% | 46,849 | 34.1% | 37,520 | 24.0% | 58,477 | 36.9% 1/2 | 46,849 |
Explanatory Notes to Tables 1 and 2
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- Gross Sales means all gross receipts, less tips and sales tax and represents the amount upon which will base your Royalty Fee, Local Advertising Requirement and Fund Contribution under your Franchise Agreement with us.
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- COGS means all variable cost inputs to facilitate customer sales, including equipmentrelated consumables, medical supplies and other usage-based costs.
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- Gross Profit means Gross Sales less COGS.
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- Advertising and Marketing means the actual local marketing expenditures of the location. Your requirements will include $12,000 of Presale Marketing and an annual Local Marketing Requirement of $2500 per month ($30,000 per year).
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- Insurance means the actual amounts expended on insurance in the operation of the Studio.
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- Office Expenses means general cleaning supplies/services, office supplies, postage, and software.
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- Payroll Expenses means all hourly and salaried labor excluding general managers, including based wages, payroll taxes, and benefits. This definition excludes the cost of multi-unit managers.
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- Rent and Lease means base rent and all related NNN (triple net) costs, including common area maintenance, insurance, and tax-related obligations under the Lease.
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- Repairs and Maintenance means all standard maintenance items, including HVAC maintenance, electrical maintenance, necessary repair items, and any equipment repairs.
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- Taxes means all taxes, including property taxes, incurred in the operation of the Studio.
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- Utilities means the following utility expenses electric, water, power, internet and phone.
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Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–63)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the median Net Operating Income for the studios analyzed is shown in two tables. For the calendar year 2024, based on the performance of Studio 1 and Studio 2, the average/median Net Operating Income was $288,297. For the first quarter of 2025, based on the performance of Studio 1, Studio 3, and Studio 4, the median Net Operating Income was $70,528.
It is important to note that the financial performance representation is based on affiliate-owned locations, specifically those in Jacksonville, Florida, and the surrounding area. The FDD emphasizes that these locations have garnered goodwill and reputation over the years, which may not be the case for a new franchise location. Additionally, Studio 2 had some limitations in its service offerings during the 2024 calendar year, as it did not offer contrast therapy or cold plunge and lacked showers, which could have impacted its financial performance.
Prospective franchisees should carefully consider these factors and understand that their individual results may vary. The FDD explicitly states that there is no assurance that a franchisee will sell as much as the affiliate locations. It is advisable to conduct thorough due diligence, including reviewing the complete Item 19 in the FDD and seeking professional financial advice, to assess the potential financial performance of a Degree Wellness franchise in their specific market.