About Degree Wellness Franchise
Degree Wellness is a health and wellness franchise that offers cold plunge therapy, infrared sauna sessions, and other recovery and rejuvenation services.
The brand entered the franchise market in 2024, capitalizing on the surging consumer interest in biohacking, recovery science, and holistic wellness practices.
The franchise fee is $49,500.
Degree Wellness Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues (Brand Development Fund, may increase to 2%) | National brand fund |
| Total Investment Range | $342,400 – $795,400 | Includes build-out, inventory, working capital |
The investment range of $342K–$795K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenues) and marketing fee (1% of Gross Revenues (Brand Development Fund, may increase to 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise License Fee | $49,500 | $49,500 |
| Initial Training Fee | $8,000 | $8,000 |
| Training Program Expenses | $1,000 | $2,500 |
| Studio Layout, Architect, Engineer, Drawings, Permits | $16,750 | $19,700 |
| R/E & Construction Management Fee | $16,500 | $16,500 |
| Lease - Security Deposit (3 months) | $11,300 | $34,700 |
| Initial Equipment Package | $13,700 | $150,800 |
| Leasehold Improvements | $139,000 | $383,000 |
| Furniture, Fixtures, and Equipment (FFE) | $30,600 | $37,100 |
| Point of Sale System, Hardware, Software, Installation | $5,600 | $7,000 |
| Initial Inventory & Supplies | $11,500 | $13,500 |
| Professional Fees & Licenses | $2,650 | $6,000 |
| Presale Marketing | $12,000 | $15,000 |
| Insurance | $1,000 | $2,400 |
| Exterior Signage | $3,300 | $9,700 |
| Additional Funds (3 months) | $20,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | $275/month (Technology Fee) + $656.86/month (POS and Text Messaging System from approved supplier) |
| Audit Fee | Cost of audit (currently $1,200) plus legal expenses if understated by 2%+ |
| Local Marketing Requirement | $2,500/month |
| Presale Marketing Plan | $12,000 (one-time before opening) |
| Local/Regional Advertising Cooperatives | Currently $0/month, max $5,000/month |
| Medical Director Fees (if applicable) | $200/month fixed fee plus usage fee |
| Vendor Payments | Actual costs (if franchisor pays vendors on behalf) |
| Additional Training | $300/person/day (subject to increase to $1,000/day) |
| Late Reporting Fee | $100/week |
| Returned Check Fee | $100/occurrence |
| Supplier/Product Evaluation Fee | $500-$700 |
| Insurance Reimbursement | Amount of unpaid premiums |
| Replacement Operations Manual | $250 |
| Termination Fee | 50% of then-current franchise fee + NPV of avg monthly fees for remaining term (5% discount) |
| Liquidated Damages (restrictive covenant violation) | $50,000 plus actual damages and attorneys fees |
| Interest on Late Payment | Lesser of 15%/year or highest commercial rate allowed by law |
| Franchise Maintenance and Refurbishing | All amounts incurred by franchisor |
| De-Identification | All amounts incurred by franchisor |
| Alterations Fee | All amounts incurred if franchisor rectifies unauthorized alterations |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 88 hours total (48 hours classroom + 40 hours on-the-job) |
| Classroom Training | 48 hours (Business Training 16 hrs Jacksonville FL, Service Offering & Memberships 8 hrs, Initial Marketing & Pre-sales/Grand Opening & Ongoing Marketing 6 hrs + 4 hrs on-the-job, Studio Operations/Mindbody/Client Experience/Front Desk Training 12 hrs classroom + 20 hrs on-the-job, Equipment & Injectables Training 6 hrs classroom + 8 hrs on-the-job) |
| On-the-Job Training | 40 hours (at your Studio location or designated training center) |
| Training Location | Jacksonville, Florida (classroom - Business Training) and your Studio location or other designated training center (on-the-job/Studio Opening Training, up to 3 days on-site with Corporate Trainer) |
| Additional Training | Additional training at $300/person/day (subject to increase to $1,000/day). Mandatory annual conference (100% attendance required). Online learning credentials provided. Training led by Tyler Moore (15+ years wellness industry, former SVP Operations at Wellbiz Brands/Drybar/Amazing Lash/Elements Massage) and Amanda Watts (President, former CEO Rito LLC). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (Protected Territory) |
| Exclusive Territory | Yes |
| Territory Size | Approximately 100,000 population, defined by zip codes |
| Description | You receive an exclusive Protected Territory. Neither franchisor nor affiliates will operate or grant a franchise for another Degree Wellness Studio within your Protected Territory while you are in compliance. Territory cannot be modified without mutual consent. You may solicit customers outside your territory. Other franchisees may also solicit within your territory via internet, email, social media, telemarketing, or direct marketing. Franchisor reserves extensive rights outside your territory including: operating under different marks, entering other healthcare businesses, selling through alternative channels, and being acquired by a competitor. Affiliate Degree Wellness International plans to offer/sell Studios internationally but will not operate within your Protected Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (one additional term equal to initial term) |
| Renewal Fee | $10,000 |
| Renewal Conditions | Franchisor notifies you at least 6 months before expiration whether eligible. Must provide notice of intent to renew, maintain possession of premises and refurbish/redecorate to current requirements, correct any deficiencies, sign then-current franchise agreement (may have materially different terms), pay renewal fee, sign general release |
| Transfer Fee | $10,000 |
| Transfer Conditions | Written approval required (not unreasonably withheld if in compliance). New owner must have sufficient business experience, aptitude, and financial resources. All amounts paid. New owner and director complete training. Landlord consent. Pay transfer fee. Sign general release. New owner assumes obligations or signs new franchise agreement. New owner must remodel to current standards. Franchisor has right of first refusal to match any offer. |
| Termination for Cause | Curable: 10 days for non-payment, 30 days for other defaults. Non-curable: failure to timely develop or open, failure to complete training, abandonment/surrender/transfer control/loss of premises, unauthorized transfer, bankruptcy/insolvency/unsatisfied judgments 30+ days, sell unauthorized products or use unapproved referral/marketing services, felony conviction or dishonest/unethical conduct, understate gross revenues by 5%+, health/safety violations, failure to submit required financial reports, 3+ defaults in any 12-month period. Also automatic termination if fail to assume/ratify franchise agreement in bankruptcy and cease performance. |
| Non-Compete Period | Not applicable (in-term non-compete only, no post-termination non-compete per Item 17(r)) |
| Non-Compete Details | During term only: neither you, your Principal Owners, General Managers, nor immediate family members may perform services for or have interest in any competitive business. No post-termination non-competition covenant (Item 17(r) states Not applicable). However, non-solicitation, non-disparagement, and non-disclosure covenants apply post-termination per Section 9 of Franchise Agreement. $50,000 liquidated damages for restrictive covenant violations. Florida law governs. Disputes arbitrated in Duvall, Florida. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You or one of your principal owners, officers, directors, or approved employees must actively participate in the actual operation of the franchise and devote as much time as reasonably necessary. If franchisor approves a general manager, that GM supervises day-to-day operations but does not need equity interest. GM cannot have interest in any competitor, must sign confidentiality and non-compete agreements. All owners must sign Assumption and Guarantee of Obligations. |
| Required Suppliers | Must use designated supplier for site selection and construction project management. Must use approved suppliers for leasehold improvements, equipment, furniture, fixtures, POS system, computer hardware/software, inventory, signage, marketing materials. Must use designated medical director if franchisee is not a licensed provider. Franchisor and affiliate DW Financial Services are potential approved suppliers. |
| Supply Restrictions | Approximately 50% of total purchases and expenses from approved suppliers for both establishing and operating the franchise. Virtually all goods and services must comply with franchisor standards and specifications. |
| Franchisor Revenue from Suppliers | For year ending December 31, 2024: franchisor received $0 from franchisee purchases (0% of $0 total revenue). Affiliate DW Financial received $0 from franchisee purchases (0% of $0 total revenue). No franchisees were operational during 2024. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Affiliate DW Financial Services, LLC may finance a portion of required equipment up to $151,000 with no money down. Variable interest rate of Prime + 7%. Repayment term negotiable up to 5 years. Security interest in all assets including after-acquired property. UCC financing statement filed. May prepay without penalty. Personal guarantee required from all owners/shareholders/members. |
Degree Wellness Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Degree Wellness Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Degree Wellness System Growth
Degree Wellness currently operates 0 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 2 |
| 2023 | 0 | 0 | 2 |
| 2024 | 2 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Degree Wellness Franchise — FAQ
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