What are the monthly sub-lease payments for the office space that Degree Wellness sub-leases from Degree Wellness, LLC?

According to Degree Wellness's 2025 Franchise Disclosure Document, the company sub-leases a portion of its office space from Degree Wellness, LLC. The monthly payments for this sub-lease are $1,700, and these payments escalate annually through the lease termination date in June 2034.

This arrangement means that Degree Wellness franchisees should be aware of this related-party transaction. It's not uncommon for franchise systems to have such arrangements, but it's important to understand the terms and ensure they are commercially reasonable. The escalating payments suggest that the sub-lease costs will increase over time, which could impact the company's financial performance and, by extension, the support it can provide to its franchisees.

Prospective franchisees should consider this sub-lease arrangement as part of their due diligence. They may want to inquire about the rationale for the sub-lease, how the monthly payment amount was determined, and the details of the annual escalation. Understanding the financial stability of Degree Wellness, LLC, and its relationship to the franchisor is also crucial. This information can help franchisees assess the potential impact on their own franchise operations and the overall health of the Degree Wellness franchise system.