What utility expenses are included in the 'Utilities' definition for a Degree Wellness franchise?

According to Degree Wellness's 2025 Franchise Disclosure Document, the term 'Utilities' encompasses specific expenses related to the operation of a Degree Wellness studio. These include electric, water, power, internet, and phone services. This definition is important for prospective franchisees as it clarifies which utility costs are considered when assessing the financial performance of affiliate locations, as shown in Item 19.

Understanding what is included in the 'Utilities' definition allows potential franchisees to accurately compare their potential operating expenses with the historical performance data provided for affiliate-owned locations. By having a clear understanding of these costs, franchisees can develop more realistic financial projections for their own studios. This is particularly relevant when reviewing the profit and loss statements, such as Chart 1, which details the utility expenses as a percentage of revenue for existing studios.

It is important to note that while the FDD defines what is included in 'Utilities,' franchisees should still conduct their own due diligence to estimate the actual costs in their specific location. Utility costs can vary significantly based on factors such as local rates, climate, and the size of the studio. Therefore, while the FDD provides a useful framework, franchisees should not rely solely on the provided data without considering their unique circumstances.