Degree Wellness Franchise
Cost, fees, owner earnings, closure rate and litigation for a Degree Wellness franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Degree Wellness discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Disclosed 2024 P&L for 2 affiliate locations; Studio 1 grossed $738k (47% net owner-operator income); Studio 2 grossed $483k (28% net). Limited data; both mature Jacksonville locations.
What a Degree Wellness franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $49,500 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $342,400 – $795,400 | Item 7 — franchisor's own low/high estimate |
7% royalty + 1% brand fund; $12-15k presale marketing required; $2,500/month local marketing; multiple ancillary fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Degree Wellness system size and owner turnover
| Total outlets | 4 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
No franchisee outlets open yet; 23 signed but unopened as of 12/31/24. High startup costs.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Degree Wellness worth it? — how it compares to 71 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 9%) |
| Startup cost | from $342,400 | about average (median $295,540) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 0.1%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every fitness & gyms franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Degree Wellness
The franchisor's framing: Disclosed 2024 P&L for 2 affiliate locations; Studio 1 grossed $738k (47% net owner-operat… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Degree Wellness franchise — frequently asked
- How much does a Degree Wellness franchise cost?
- The FDD lists a total initial investment of about $342,400–$795,400, including a $49,500 initial franchise fee.
- How much do Degree Wellness franchise owners make?
- Disclosed 2024 P&L for 2 affiliate locations; Studio 1 grossed $738k (47% net owner-operator income); Studio 2 grossed $483k (28% net). Limited data; both mature Jacksonville locations. We grade this disclosure C for honesty.
- What are the Degree Wellness franchise fees?
- Degree Wellness' FDD discloses a $49,500 initial franchise fee, a 7% royalty on gross sales, a 1% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 7% royalty + 1% brand fund; $12-15k presale marketing required; $2,500/month local marketing; multiple ancillary fees.
- What is the Degree Wellness franchise profit margin?
- Degree Wellness does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Disclosed 2024 P&L for 2 affiliate locations; Studio 1 grossed $738k (47% net owner-operator income); Studio 2 grossed $483k (28% net). Limited data; both mature Jacksonville locations. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Degree Wellness franchise failure rate?
- No franchisee outlets open yet; 23 signed but unopened as of 12/31/24. High startup costs.
- How many Degree Wellness locations are there?
- Degree Wellness' FDD reports 4 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Degree Wellness have complaints or lawsuits?
- Degree Wellness discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Degree Wellness franchise worth it?
- It depends on the numbers, not the pitch. Degree Wellness scores C on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Degree Wellness to similar franchises
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Source: MN CARDS 35172-202512-03 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Degree Wellness or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.