Degree Wellness Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$348,487 - $797,332
Franchise Fee
$47,000
Min Cash Required
$23,910
Total US Locations
4
Business Summary
Degree Wellness Studios are business-to-consumer franchises that offer innovative self-care solutions designed to enhance physical and mental health. These studios leverage heat, cold, light, and advanced nutrients, providing services such as cryotherapy, cold plunge, infrared sauna, red light therapy, IVs and other injectables, oxygen therapy, compression massage, and halotherapy. They also sell related products and merchandise, operating with an easy system to provide a premier wellness experience.
Corporate History
Degree Wellness Franchise, LLC was organized as a Delaware limited liability company in February 2024 and began offering franchises in May 2024. Its predecessor, Degree Wellness, Inc., was formed in Florida in March 2018. An affiliate, Degree Wellness, LLC, formed in April 2020, purchased most of the assets of Degree Wellness, Inc. in October 2020 and currently operates four company-owned studios in Jacksonville, Florida. Other affiliates include Degree Wellness IP, LLC, which licenses trademarks, and DW Financial Services, LLC, which provides limited financial services to support the system. Degree Wellness has also engaged Franworth, a company that provides franchise development and franchisee support services, which is an affiliate of one of its members.
Financial Overview
Investment Range
$348,487 - $797,332
Franchise Fee (Low)
$47,000
Franchise Fee (High)
$49,500
Minimum Cash Required
$23,910
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$189,369
Equipment Costs (High)
$584,274
Working Capital
$31,955
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Degree Wellness incurred a net loss of $887,276 for the period from April 1, 2024, through December 31, 2024, and had a members' deficit of $440,264 as of December 31, 2024. The members have historically provided the necessary working capital to meet Degree Wellness's short-term obligations and cover net operating losses. The members have pledged to continue their financial support, and management believes these actions will enable Degree Wellness to continue operations through March 24, 2026.
Financing Details
Degree Wellness, through its affiliate DW Financial Services, LLC, may offer financing for a portion of the required equipment for qualified prospective franchisees. While Degree Financial Services, LLC is not obligated to provide financing, its standard offering can cover up to $151,000 of equipment with no money down, at an interest rate of Prime plus 7%, over a five-year period. Franchisees must sign a promissory note and make monthly installments. Degree Financial Services, LLC requires a security interest in the Studio franchise, including all assets, and may file a UCC financing statement. Personal guarantees from shareholders, members, partners, or owners (and potentially their spouses) are required for legal entities. Prepayment without penalty is allowed. In case of default, Degree Financial Services, LLC can declare the entire remaining amount due, and Degree Wellness may terminate the franchise agreement. Degree Wellness may also refer franchisees to third-party lenders but does not guarantee obligations to them.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Avg Square Footage
2,100
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Degree Wellness has no litigation history to report. Item 3 of the FDD states that no information is required to be disclosed in this item, indicating that Degree Wellness, its predecessors, parents, or executives have not been involved in any material litigation or bankruptcy proceedings.
Bankruptcy History
Degree Wellness has no bankruptcy history to report. Item 4 of the FDD states that no information is required to be disclosed in this item, indicating that Degree Wellness, its predecessors, parents, or executives have not been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Degree Wellness franchisees must be in compliance with all terms of the Franchise Agreement and other agreements, including the Operations Manual, at the time of expiration. They must also maintain possession of the premises (or secure new ones) and refurbish/redecorate the studio to meet current requirements. Any identified operational deficiencies must be corrected before expiration. Franchisees are required to sign Degree Wellness's then-current franchise agreement and any ancillary documents, which may contain materially different terms, including potentially increased continuing franchise fees and fund contributions. A renewal fee of $10,000 must be paid, and franchisees and their principal owners must sign a general release of claims against Degree Wellness and its affiliates. Franchisees must provide at least 6 months' notice of intent to renew.
Training & Support Program
Franchisor Assistance
Degree Wellness provides various forms of assistance to its franchisees. Before opening, Degree Wellness helps by designating protected territories, approving proposed studio sites and lease terms, and furnishing prototype plans for layout, equipment, and decor. It also identifies required products, equipment, and approved suppliers, lends a copy of its Operations Manual, and provides specifications for the computer and billing systems. Franchisees and their designated staff must complete an initial training program, and Degree Wellness reviews and approves any proposed advertising. For Studio Management Businesses, Degree Wellness reviews and approves the management agreement with a licensed physician or professional corporation. After opening, Degree Wellness offers ongoing guidance on services, products, operating procedures, purchasing, local advertising, and management. It issues and modifies System Standards, allows the use of its Marks and confidential information (indemnifying against certain claims), and reviews/approves proposed suppliers and advertising. Degree Wellness administers a Brand Development Fund and provides digital marketing materials. Additionally, it conducts inspections of studios to ensure quality standards and may provide further onsite or offsite training, with attendance at its annual conference being mandatory.
Initial Training Hours
88
Training Location
Ann Arbor, Michigan and the franchisee's studio location
Ongoing Support
Degree Wellness provides ongoing support to its franchisees after opening. This includes continuous guidance and assistance on services and products, operating procedures, purchasing approved items, developing local advertising, and general management. Degree Wellness maintains and updates an Operations Manual for ongoing reference and issues modifications to System Standards. Franchisees are allowed to use the Degree Wellness Marks and confidential information, with indemnification provided for Mark usage in compliance with the agreement. Degree Wellness reviews and approves suppliers and any franchisee-developed advertising. Additional ongoing and supplemental training programs may be offered and mandated, with a required annual conference. Degree Wellness also administers a Brand Development Fund for system-wide advertising and conducts inspections of studios to ensure quality, providing further guidance based on these evaluations.
Franchise Requirements
Ideal Candidate Profile
Degree Wellness primarily seeks individuals licensed to practice or provide health care to operate its Studio franchises. If a candidate is not licensed, they must operate the studio as a Studio Management Business, which involves entering into a management agreement with a licensed provider. The franchisee or one of their approved principal owners, officers, directors, or employees must actively participate in the day-to-day operation of the franchise, devoting sufficient time for efficient operation, unless an on-site general manager is approved. For transfers, proposed new owners must possess sufficient business experience, aptitude, and financial resources.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
hands-on
Territory Type
Exclusive
Territory Size Requirements
Degree Wellness defines its exclusive Protected Territories based on the population of the market, area demographics, and estimated market demand for its franchised products and services. Typically, a Protected Territory is defined to encompass approximately 100,000 persons. If an approved location is identified at the time of signing the Franchise Agreement, the boundaries of the Protected Territory will be mutually agreed upon.
Staffing Notes
Degree Wellness franchisees are solely responsible for all aspects of employee employment, including terms of employment, compensation, hiring, retention, and firing decisions, as well as proper training of employees and independent contractors. Franchisees must ensure all personnel possess the necessary licenses and certifications required by law or Degree Wellness. All employees and independent contractors must sign agreements to maintain confidentiality of proprietary information and adhere to non-solicitation, non-disparagement, and non-competition covenants. Degree Wellness requires franchisees to enroll in and maintain human resources and payroll services through a designated vendor, which covers payroll processing, tax filing, HR solutions, and benefits administration. Employees must maintain a neat appearance and provide courteous service. Franchisees are prohibited from recruiting or hiring employees (or former employees within six months) from other Degree Wellness studios or the franchisor without prior written consent.