What was the net loss from operating activities for Degree Wellness as of December 31, 2024?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | |
|---|---|
| Cash | $ 428,587 |
| Deferred franchise fees (note 3) | 2,092,659 |
| Prepaid expenses and other | 27,319 |
| Right-of-use assets, operating leases (note 6) | 155,795 |
| Total assets | $ 2,704,360 |
| Liabilities and Members' Deficit | |
| Liabilities Accounts payable - related party (note 2) Accounts payable - trade Accrued liabilities |
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the company experienced a net loss from operating activities of $887,276 for the period from April 1, 2024, through December 31, 2024. This figure reflects the financial performance of Degree Wellness during its initial operating period, as the company was formed in February 2024.
It is important to note that this net loss occurred during a period when Degree Wellness was actively establishing its franchise system. The FDD indicates that the company's revenue during this period was $116,204, while operating expenses totaled $1,003,480. The franchisor's expenses exceeded its revenues, resulting in the reported net loss.
Prospective franchisees should consider this net loss in the context of the company's early stage of development. The FDD also includes a note regarding uncertainty, acknowledging that the company's ability to continue operations depends on the financial support of its members, who have pledged to provide the necessary capital through March 24, 2026. This reliance on member contributions to offset operating losses is a critical factor for potential franchisees to evaluate. Franchisees should inquire about the long-term financial strategy of Degree Wellness and its plans to achieve profitability.