What does 'Net Income Adjusted, OO' represent for a Degree Wellness franchise, and what costs are excluded?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Net Income Adjusted, OO means Gross Proft less all of the aforementioned expenses. This number excludes the costs associated with a general manager and intend to show the income of this studio the franchisee was an owner operator ("OO"). This data does not include or account for any other operating costs or expenses that are not specifically identified in this Explanatory Note.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–63)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, 'Net Income Adjusted, OO' represents the Gross Profit of a studio location minus specific expenses. This metric is designed to show the potential income of a Degree Wellness studio if the franchisee operates it themselves as an owner-operator.
The calculation of 'Net Income Adjusted, OO' excludes the costs associated with a general manager. The purpose of this adjustment is to provide a clearer picture of the studio's profitability when the franchisee is actively involved in the day-to-day operations and not relying on a hired manager.
It's important to note that this data does not include or account for any other operating costs or expenses that are not specifically identified in the Explanatory Note within the FDD. Prospective Degree Wellness franchisees should carefully review the included and excluded expenses to understand the full scope of costs associated with running a franchise and to make informed financial projections.