Are the payments disclosed in Item 7 for a Degree Wellness franchise refundable?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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Explanatory Notes:
General. The preceding chart and accompanying notes describe the estimated total initial investment expenses to obtain and commence business for a single Degree Wellness Studio franchise. These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating a single Degree Wellness Studio. Unless negotiated with a third-party, non-affiliated vendor, all payments disclosed in this Item are non-refundable.
Our estimates are based on our experience with our Studio franchises and our current requirements for Studios. The factors underlying our estimates may vary depending on a number of variables, and the actual investment you make in developing and opening your Degree Wellness Studio franchise may be greater or less than the estimates given depending upon the location of your franchise, and current relevant market conditions.
Your estimated initial investment for each additional Studio you purchase may be lower if we charge a reduced Initial Franchise Fee. See Item 5 for additional information. See Item 10 for additional information regarding any financing options. All expenses payable to us and third parties are non-refundable, except as you may arrange for utility deposits and other payments. (3 Months)
- Initial Franchise Fee; Initial Training Fee. The Initial Franchise Fee and Initial Training Fee that are payable in a lump sum upon execution of your Franchise Agreement is
- disclosed more fully in Item 5, and is deemed fully earned and non-refundable upon payment.
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Source: Item 7 — Estimated Initial Investment (FDD pages 22–26)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, most payments disclosed in Item 7 are non-refundable unless otherwise negotiated with a third-party vendor. The FDD specifies that expenses payable to Degree Wellness and third parties are generally non-refundable, with the exception of potential utility deposits or other payments that a franchisee might arrange to be refundable.
The initial franchise fee and initial training fee, payable in a lump sum upon signing the Franchise Agreement, are deemed fully earned and non-refundable upon payment. While training program expenses are typically non-refundable, Degree Wellness advises prospective franchisees to inquire about refund policies with the vendors providing transportation, meals, and lodging. Lease security deposits may be refundable by the landlord, but rental payments typically are not, so franchisees should clarify the refund policy with their leasing agent or landlord before signing a lease agreement.
Given that refundability depends on the specific payment and the vendor involved, prospective Degree Wellness franchisees should carefully review the terms and conditions of each payment outlined in Item 7. It is crucial to discuss refund policies with both Degree Wellness and any third-party vendors before making any payments to fully understand the financial commitments and potential risks involved in establishing a Degree Wellness Studio franchise.