What security deposit amount does Degree Wellness expect franchisees to pay for their leased Premises?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To |
|---|---|---|---|---|
| Be Made | ||||
| Franchise License Fee (1) | $49,500 to $49,500 | Lump Sum | At signing of Franchise Agreement | Us |
| Initial Training Fee | $8,000 to $8,000 | Lump Sum | At signing of Franchise Agreement | Us |
| Training Program Expenses (2) | $1,500 to $5,000 | As agreed | As incurred | Third-party providers, including airline, lodging and meals. |
| 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) | ||||
| Lease - Security Deposit | $11,318 to $34,668 | As agreed | When securing the | Third Party Provider |
| (3 months) (5) | premises | |||
| Initial Equipment Package | $13,620 to $145,709 As agreed, invoiced or | As incurred | Approved Supplier | |
| (6) | arranged | |||
| Leasehold Improvements | $138,952 to $384,621 | As arranged | As invoiced | Third Party Provider |
| (7) | ||||
| 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) | ||||
| Presale Marketing (12) | $12,000 to $15,458 | As agreed | Before opening | Third Party Provider |
| Insurance (13) | $1,023 to $2,340 | As agreed | As invoiced | Third Party Provider |
| 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, franchisees can expect to pay between $11,318 and $34,668 for a security deposit on their leased premises. This estimate is based on leasing a space between 1,800 and 2,400 square feet, with the security deposit typically being equivalent to three months' rent. Degree Wellness bases this estimate on their affiliates' recent experience opening an affiliate-owned studio.
It's important to note that the actual cost to lease a location for a Degree Wellness studio can vary significantly. Factors influencing the lease cost include the facility's location, square footage, cost per square foot, renovation costs, and any required maintenance fees. The security deposit is paid to a third-party provider when securing the premises.
While the landlord may refund the security deposit, rental payments are typically non-refundable. Degree Wellness advises prospective franchisees to inquire about the landlord's refund policy before signing a lease agreement. Understanding these potential costs and refund policies is crucial for franchisees to accurately budget their initial investment.