What is the refund policy for the Initial Franchise Fee for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 7 — Estimated Initial Investment (FDD pages 22–26)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $49,500, is generally non-refundable. The FDD states that the initial franchise fee is considered fully earned by Degree Wellness upon payment. This means that once the franchisee pays the initial fee at the signing of the Franchise Agreement, Degree Wellness is not obligated to refund it, regardless of whether the franchisee proceeds with opening the studio.
This non-refundable policy is a common practice in the franchise industry, as the initial fee is intended to compensate the franchisor for the costs and efforts involved in evaluating the franchisee, providing initial training, and granting the franchise rights. Prospective Degree Wellness franchisees should carefully consider this policy and ensure they are fully committed to the franchise before paying the initial fee.
While the initial franchise fee is non-refundable, the FDD mentions that utility deposits and other payments may be refundable, but this would be arranged between the franchisee and the third-party provider. It is important for potential Degree Wellness franchisees to understand that most expenses payable to Degree Wellness or third parties are non-refundable, so due diligence is essential before making any payments.