What were the total fees received by Degree Wellness in 2028?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company earns revenue through franchise fees, training fees, and ongoing royalty and advertisement fees under the Company's franchise agreements.
Initial franchise fee revenue is recognized over the life of the franchise agreements, which is generally 10 years, as the fee is for the right to use the Company's intellectual property over the term of the agreement. Initial franchise fee payments received by the Company that have not yet been recognized as revenue are recorded as deferred franchise revenue. Expenses incurred related to the franchise agreements, consisting mostly of broker fees, are deferred and recognized as expense over the life of the associated franchise agreement. See Note 3 for further disclosures related to deferred franchise revenue and deferred franchise fees. During the period April 1, 2024 through December 31, 2024, the Company's revenue was comprised entirely of franchise fees recognized "over time".
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Degree Wellness Franchise Disclosure Document, there is no specific information provided regarding the total fees received by Degree Wellness in 2028. The document includes information about various fees that franchisees pay, such as initial franchise fees, continuing franchise fees, fund contributions for advertising, and technology fees. It also discusses how Degree Wellness recognizes revenue and manages funds.
While the FDD details the types of fees Degree Wellness collects, it does not provide a historical record of total fee revenue for past years or projections for future years. The financial statements included in the FDD, as of December 31, 2024, offer a snapshot of the company's revenue recognition policies and practices but do not include specific annual revenue figures.
To obtain information about Degree Wellness's total fee revenue in 2028, a prospective franchisee should directly ask the franchisor for this data during their due diligence process. This inquiry could be part of a broader discussion about the franchisor's financial performance and the financial performance of existing franchisees.