Degree WellnessFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Degree Wellness franchise requires a total initial investment of $342K – $795K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $610K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $342K – $795K
- 62nd pct Health & Fitn…
- Avg gross sales
- $610K
- 34th pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 4
- 21st pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
42% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $342K – $795K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $610K/year (median $610K), with an estimated 42% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 21/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Degree Wellness Franchise, LLC
- Incorporated in
- DE
- HQ
- 200 Riverside Ave., Jacksonville, FL 32202
- Auditor
- Doeren Mayhew
- Audited financials
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Degree Wellness franchisees operate a health and wellness service center—likely combining fitness coaching, nutritional guidance, wellness assessments, and/or recovery services. Day-to-day operations involve client consultations, program delivery, facility management, and marketing to build a local client base in their protected territory.
- CEO
- Amanda Watts
- Headquarters
- FL
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $273K | $706K |
| Total initial investment | $342K | $795K |
Source: Degree Wellness 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$183K
30.0% margin
Unlevered ROIC
31%
EBITDA / total invested capital
Payback
3.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $342K – $795K
- Near category avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 2.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $275 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $610K
- Per unit, per year
- Median gross sales
- $610K
- Avg p&l bottom line
- $239K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 42.1%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical Profit and Loss
- Sample size
- 2 units
- vs category median 11 · small
- Range (low → high)
- $483K→$738K
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Degree Wellness Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 17
- Loan volume
- $9.9M
- Median loan
- $617K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Degree Wellness's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 9 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage wellness franchise with unproven unit economics, minimal disclosure transparency, and a dangerously small franchisee base that cannot validate advertised financial performance.
Audited financials (Item 21)
Yes · Doeren Mayhew⚠ Going-concern note flagged
Score breakdown · what drove the 21 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory indicates unproven scalability and minimal network support
- 02MINORWide investment range ($342.4K–$795.4K) with no explanation suggests inconsistent site costs or vague financial planning
- 03MEDNo Item 19 (financial performance representations) disclosed—cannot verify if $610K average revenue and $288K net income are achievable or representative
- 04MINORExtremely small franchisee base (4 units) limits ability to validate claims or receive peer support
- 05MINORHigh royalty rate (7%) combined with ambiguous revenue figures creates profitability uncertainty for new franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 40 hrs
- POS system
- Mindbody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mindbody
Item 20 · call current owners
Franchisee Contacts
24 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Degree Wellness · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Degree Wellness franchise?
The total investment to open a Degree Wellness franchise ranges from $342K – $795K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Degree Wellness franchise owners earn?
According to Item 19 of the Degree Wellness FDD, the average gross sales per unit is $610K. The median is $610K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Degree Wellness's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Degree Wellness (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Degree Wellness franchise locations are there?
As of their most recent FDD filing, Degree Wellness has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Degree Wellness a good franchise to buy?
FranchiseVerdict rates Degree Wellness as a A-grade franchise with a risk score of 21 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.