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Degree Wellness
Degree Wellness franchises operate studios that provide innovative self-care solutions leveraging heat, cold, light, and advanced nutrients to enhance physical and mental health, including services like cryotherapy, cold plunge, infrared sauna, red light therapy, IVs, oxygen therapy, compression massage, halotherapy, and related products and merchandise. The business model is business-to-consumer with an easy operating system, offering single-unit studio franchises or multi-unit development agreements in designated territories. Their target market is primarily female heads of household, who manage household budgets and health decisions, in the competitive wellness sector.
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Franchise Costs
7% royalty + 1% brand fund + $2,500/mo local marketing + $275/mo technology + $657/mo POS system
Financial Performance
Item 19 Financial Performance
Data Based On: 2 affiliate-owned locations open for the entire 2024 calendar year.
* Data extracted from 'Table 1 - Profit and Loss for Calendar Year 2024' on page 1, specifically the 'Average/Median' column. Gross Revenue, Gross Profit, Net Income Adjusted, OO, and Net Income Adjusted, Investor values were taken directly. 'Net Income Adjusted, OO' is used for average_net_profit based on Note 12's definition on page 3, describing profit before general manager costs. 'Net Income Adjusted, Investor' is used for average_net_income based on Note 13's definition on page 3, representing profit after all explicitly disclosed deductions. The 'best_guess_profit_low' is set to 'Net Income Adjusted, Investor' ($183,424), and 'best_guess_profit_high' is set to 'Net Operating Income' ($288,297), which represents profit before estimated fees and specific manager payroll, offering a broader potential range. Although 'Table 2 Profit and Loss for First Quarter 2025' on page 2 (data for 3 studios) is also present, the full-year 2024 data from Table 1 (2 studios) was prioritized for this output as it represents a longer operating period.
Extracted Item 19 Section
Avg. Revenue: $610,397
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Unlock financial performance dataDegree Wellness Franchise Analysis
Cryotherapy chills and infrared saunas heat up a fresh player in wellness franchising, but Degree Wellness's rapid studio rollout since 2024 hides some early tells. Item 19 discloses revenue and profit snapshots from its four corporate spots, while SBA loan records hint at real-world funding paths. What do these numbers say about scaling in a female-driven health market—opportunity or overheat?
Item 7 lays out the initial investment from $342,400 to $795,400, covering buildout for studios offering cold plunges, red light therapy, IVs, and merchandise in 1,500-3,000 sq ft spaces. The $49,500 franchise fee secures territories for single or multi-unit deals, but ongoing fees stack up: 7% royalty, 1% brand fund, plus $2,500 monthly local marketing, $275 tech, and $657 POS. With franchising just starting in 2024 from Jacksonville, FL, eight SBA loans averaging $524,688 show lenders backing expansions despite the competitive B2C wellness arena.
Item 19 shines with average and median gross revenue both at $610,397 across limited units, projecting 23 new openings. Estimated profits range $183,424 to $288,297, painting a solid 30-47% margin potential after fees if volumes hit. Four corporate locations and no contraction signals suggest momentum, though tiny footprint means validate local demand—high rewards for operators nailing the self-care trend without massive overhead.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Degree Wellness Compares
Key Insights
- Lower than average SBA loan default rate in Wellness Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Degree Wellness Current | $342K – $795K | $50K | 7.0% | 0 |
| MASSAGE ENVY | $719K – $1.1M | $45K | 6.0% | 1,009 |
| The Dripbar (Unit) | $147K – $415K | $55K | 7.0% | 106 |
| MEDI-WEIGHTLOSS BUSINESS | $207K – $435K | $45K | 10.0% | 88 |
| MASSAGELUXE | $570K – $800K | $43K | 6.0% | 86 |
| beem Light Sauna | $393K – $718K | $65K | 8.0% | 38 |
Wellness Services Average 13 franchises | $392K – $699K | $53K | 7.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 13 Wellness Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Degree Wellness franchisees (2025 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
8 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
24 franchisee contacts on file from official FDD filings.
24 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Degree Wellness franchise ranges from $342,400 to $795,400. This includes a franchise fee of $49,500. Ongoing royalty fees are 7.0% of gross sales.
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