Does Degree Wellness provide any assurance that a franchisee will sell as much as the affiliate locations?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Some affiliate locations sold these amounts. Your individual results may vary. There is no assurance that you will sell as much.
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 company does not provide any assurance that a franchisee will achieve the same sales as its affiliate locations. While the FDD includes financial performance data from some affiliate locations, it explicitly states that individual results may vary. This means that a prospective franchisee should not rely solely on the financial performance of existing affiliate locations when evaluating the potential profitability of a Degree Wellness franchise.
The FDD provides historical performance data for affiliate-owned locations, but Degree Wellness emphasizes that these results are not a guarantee of future performance. The financial performance representation includes data from Studio 1 and Studio 2, but notes that Studio 2 is different because it does not offer contrast therapy or cold plunge and does not have showers. Studio 2 is being relocated to offer these services. The performance of these studios is presented for informational purposes, but Degree Wellness makes no promise that a new franchisee will achieve similar results.
Degree Wellness highlights that the disclosed affiliate locations are in Jacksonville, Florida, or the surrounding area, where the brand has established goodwill and a strong reputation. This existing brand recognition in the area may contribute to the performance of these affiliate locations, which a new franchisee in a different market may not immediately benefit from. Additionally, the FDD notes that the disclosed affiliate locations were open for some time as of the commencement of the 2024 calendar year, and as such, the profit and loss information disclosed for certain of the disclosed affiliate locations of this Item did not incur certain of the startup/initial costs that might be incurred when first opening a Studio given their more mature operations.
Prospective franchisees should carefully review all the information provided in Item 19 of the Degree Wellness FDD, including the general notes and financial charts. It is crucial to conduct independent research, develop a comprehensive business plan, and consider various factors such as location, market conditions, and operating costs when assessing the potential financial performance of a Degree Wellness franchise. Contacting existing franchisees to discuss their experiences and financial results is also a recommended step in the due diligence process.