Degree Wellness
Wellness & Personal Care · Recovery & Wellness Studios
- Active units
- 0
- Avg unit volume
- $565k
- Royalty
- 7.0%
Franchised, year-end 2023
of weekly Net Sales
About Degree Wellness
Operating as a brick-and-mortar franchise, Degree Wellness serves a broad customer base including athletes and individuals seeking improved energy or physical recovery. The studios provide a variety of technology-based treatments such as cold plunge therapy, IV vitamin infusions, and compression massage. The business model focuses on membership-based services and a social lounge environment designed for efficiency. This health and wellness concept utilizes automated systems to support daily studio operations.
Key terms
- Franchise fee
$50k
- Brand fund
1.0% of Net Sales
- Local advertising
2500.0% of Net Sales
- Footprint
1,700 – 2,500 sq ft
- Development Fee - 2 Studios
$92k
- Development Fee - 3 Studios
$130k
- Development Fee - 4 Studios
$166k
- Development Fee - 5 Studios
$200k
- Development Fee - 6 through 10 Studios
$32k
- Veteran discount
2500.0% off franchise fee — VetFran reduction of $2,500 on the Initial Franchise Fee or Development Fee for the first franchise
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations—
Franchised units open at year-end
- New openings—
Gross new units opened during the calendar year
- 1-year unit growth rate—
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio—
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$601k
Item 19 cohort year 2025
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate-1.5%
Year-over-year change in median AUV
- Store-level EBITDA Margin43.6%
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$592k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open10 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate7.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio1.0×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns44.2%
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.