Bottom line
- Total investment $342K – $795K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $610K/year (median $610K). Estimated payback in 2.0 years.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 34 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Degree Wellness unit return on the cash you put in?
Unlevered ROIC · per unit
31%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Degree Wellness units return on equity?
Equity IRR · 5-yr
35.8%
4.61× MOIC
Year-1 DSCR
2.29×
EBITDA ÷ debt service
Equity required
$4.8M
on $14.0M purchase
Total debt
$9.2M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 47 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
24 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Degree Wellness · FDD (2025) PDF