What is the role of the Approved Supplier in the construction of a Degree Wellness Franchised Business?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Real Estate and Construction Management Services.
Our standard franchise offering expects and assumes that you will use our third-party Approved Supplier, for real estate and construction project management services for the construction and buildout of your Franchised Business.
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- Studio Layout, Architect, Engineer, Drawings, and Permits.
This range includes our required Architect's fee for your Studio's complete construction drawings as well as any construction permits.
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To |
|---|---|---|---|---|
| Be Made | ||||
| Studio Layout, Architect, Engineer, Drawings, and Permits (3) | $19,250 to $21,500 | As agreed | As incurred | Approved Supplier and Third Party Providers |
| R/E & Construction Mgt | $20,500 to $20,500 | Lump Sum | As incurred | Approved Supplier |
| Fee (4) | ||||
| Initial Equipment Package | $13,620 to $145,709 As agreed, invoiced or | As incurred | Approved Supplier | |
| (6) | arranged | |||
| Furniture, Fixtures, and | $29,629 to $40,019 | As agreed | As invoiced | Us and Approved Supplier |
| Equipment (FFE) (8) | ||||
| Point of Sale System, | $3,850 to $4,250 | As agreed | As incurred | Approved Supplier |
| Hardware, Software and | ||||
| Installation (9) | ||||
| Initial Inventory & | $9,531 to $11,092 | As agreed, invoiced or | As incurred | Approved Supplier |
| Supplies (10) | arranged | |||
| Professional Fees & | $2,586 to $5,000 | As agreed | As incurred | Approved Supplier |
| Licenses (11) | ||||
| Exterior Signage (14) | $3,318 to $9,675 | As agreed | As incurred | Approved Supplier |
Source: Item 7 — Estimated Initial Investment (FDD pages 22–26)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Approved Suppliers play a significant role in the construction and build-out of a franchised business. Degree Wellness expects franchisees to use their third-party Approved Supplier for real estate and construction project management services.
Specifically, the Approved Supplier is involved in several key areas. The initial investment includes $19,250 to $21,500 for studio layout, architect, engineer, drawings, and permits, payable to the Approved Supplier and other third-party providers. Additionally, there's a $20,500 lump sum payment for real estate and construction management fees due to the Approved Supplier as incurred. The initial equipment package also involves Approved Suppliers, with costs ranging from $13,620 to $145,709, depending on financing terms. Furthermore, franchisees will likely purchase furniture, fixtures, and equipment from both Degree Wellness and Approved Suppliers, with costs ranging from $29,629 to $40,019.
Moreover, the point of sale system, hardware, software, and installation, estimated between $3,850 and $4,250, must be purchased from Approved Suppliers. The initial inventory and supplies, costing between $9,531 and $11,092, are also sourced from Approved Suppliers. Even professional fees and licenses may involve payments to Approved Suppliers, with an estimated range of $2,586 to $5,000. Lastly, exterior signage, which costs between $3,318 and $9,675, is also obtained from Approved Suppliers.
In summary, Approved Suppliers are integral to various aspects of establishing a Degree Wellness franchise, from initial layout and construction to equipment, supplies, and ongoing operational systems. Franchisees should carefully evaluate the costs and services provided by these Approved Suppliers to ensure they align with their budget and business needs.