Degree Wellness franchise unit economics
Degree Wellness franchisees run self-care studios that sell sessions and memberships for heat, cold, light and nutrient therapies.
Degree Wellness franchise at a glance
Degree Wellness's Item 19 prints 2025 profit and loss statements for three affiliate studios, with revenue from $521,743 to $701,377 and net operating income from 34.5% to 53.1% of revenue.
Three affiliate Degree Wellness studios averaged $601,389 of revenue in 2025, according to Item 19 of Degree Wellness’ 2026 FDD, issued 30 April 2026. Fees paid to Degree Wellness come to about 8%* of sales. A Degree Wellness franchise costs $335,800 to $848,500 to open.
- Opening a Degree Wellness studio costs $335,800 to $848,500, including a $49,500 franchise licence fee.
- Degree Wellness charges a 7% royalty and 1% to a brand fund, and requires $2,500 a month of local marketing.
- Three affiliate Degree Wellness studios averaged $601,389 of revenue in 2025, from $521,743 to $701,377.
- After the 7% royalty and 1% fund, an owner working in the studio keeps 35.6% of revenue on average, and 26.9% with a general manager.
These figures come from Degree Wellness's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The owner figures are Averan calculations from the brand's profit and loss statements.
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Talk to Averan → Averan Degree Wellness Conversion Package →Three Jacksonville studios kept 34.5% to 53.1% of revenue as operating income, on payroll of just 21.8%. Against that, 80 agreements are signed and waiting while two franchised studios trade.
- Net operating income runs 34.5% to 53.1%.$200,455 to $372,413 on revenue of $581,049 to $701,377.
- Payroll is 21.8% of revenue.$131,317 on average *.
- Hiring a manager costs 8.7 points of margin.An owner who works in it keeps 35.6%; one who hires a general manager keeps 26.9% *, $52,004 of the difference.
- 80 agreements are signed against two franchised studios trading.79 are projected to open next year, Florida holding 13 and Texas 12, a 40-times step *.
- Opening late is charged by the month.$500 a month after twelve, $1,000 after fifteen and $2,000 after eighteen, until the doors open.
Affiliate studio profit and loss, 2025
| Line | Studio 1 | Studio 2 | Studio 3 | Average | Share * |
|---|---|---|---|---|---|
| Gross revenue | $701,377 | $521,743 | $581,049 | $601,389 | 100.0% |
| Cost of goods sold | $63,739 | $44,492 | $58,934 | $55,722 | 9.3% |
| Gross profit | $637,638 | $477,251 | $522,114 | $545,668 | 90.7% |
| Payroll | $129,057 | $123,525 | $141,369 | $131,317 | 21.8% |
| Rent and lease | $54,129 | $55,224 | $92,536 | $67,296 | 11.2% |
| Advertising and marketing | $43,631 | $40,869 | $45,043 | $43,181 | 7.2% |
| Utilities | $16,721 | $17,490 | $19,367 | $17,859 | 3.0% |
| Office expenses | $11,533 | $13,353 | $11,569 | $12,152 | 2.0% |
| Insurance, taxes and repairs | $10,154 | $13,749 | $11,775 | $11,893 | 2.0% |
| Total expenses | $265,225 | $264,210 | $321,659 | $283,698 | 47.2% |
| Net operating income | $372,413 | $213,041 | $200,455 | $261,970 | 43.6% |
| Share of revenue | 53.1% | 40.8% | 34.5% | 43.6% | – |
Every column adds to its printed total and the averages reconcile exactly, with Studio 3’s gross profit printing one dollar below its own subtraction *.
Payroll is 21.8% of revenue. A sauna, a cold plunge and a light bed run without a person for every customer-hour.
Studio 1 bills 20.7% more than Studio 3 and keeps 18.6 more points of it *. The gap is rent at 7.7% against 15.9% and payroll at 18.4% against 24.3%, 14.1 points between two studios in the same city *.
Two of the three studios are still in their second year. Studio 1 was trading before 2025 began and Studios 2 and 3 had been open under twelve months at that point. So 34.5% and 40.8% describe a ramping studio and 53.1% describes a settled one.
Advertising runs 7.2% against a required 5.0%. The agreement sets a $2,500 monthly minimum, which is $30,000 a year or 5.0% of the average studio *; the three studios actually spent $40,869 to $45,043 *. Budget for what they spend.
All three studios sit in and around Jacksonville, Florida, where the brand has been trading for years. A fourth affiliate studio was left out for relocating, and both franchised studios were left out for want of a full year, so three of six studios carry the figures.
Owner income after the brand charge
| Line | Studio 1 | Studio 2 | Studio 3 | Average |
|---|---|---|---|---|
| Net operating income | $372,413 | $213,041 | $200,455 | $261,970 |
| Royalty at 7% | $49,096 | $36,522 | $40,673 | $42,097 |
| Brand fund at 1% | $7,014 | $5,217 | $5,810 | $6,014 |
| Owner-operator income | $316,302 | $171,302 | $153,971 | $213,858 |
| Share of revenue | 45.1% | 32.8% | 26.5% | 35.6% |
| Studio manager payroll | $59,593 | $47,111 | $49,308 | $52,004 |
| Investor income | $256,710 | $124,191 | $104,663 | $161,855 |
| Share of revenue | 36.6% | 23.8% | 18.0% | 26.9% |
Both bottom lines leave out multi-unit management, interest, tax, depreciation and any reserve for replacing the equipment *.
A general manager costs $52,004 and 8.7 points *, 8.5% to 9.0% of revenue at each studio. The difference between working in the studio and hiring a manager is a fifth of the profit *.
With a manager, the lowest studio keeps 18.0%. The lowest of the three studios, in its second year and paying 15.9% of revenue in rent, still returns $104,663 after the brand charge and a full manager *. Against a build starting at $335,800 that is a 3.2-year payback with someone else running it *.
The mature studio pays back in 1.1 years owner-operated *, $316,302 against $335,800, and 0.9 years against the $286,300 build once the franchise fee is excluded *. They rest on three studios in one city.
The 8% charge is a model figure. The affiliate studios are exempt from the royalty and the fund, so the 7% and 1% here are what a franchisee would have owed. The model is conservative on advertising and silent on the $12,000 of presale marketing, so treat the owner-operator line as a ceiling.
Latest
The US red light therapy bed market is growing 11.2% a year
The Global Wellness Institute reported on 28 May 2026 that the US market for red light therapy beds grew from $69 million in 2024 to a projected $84.7 million in 2025, heading toward nearly $200 million by 2033 at a compound rate of 11.2%. It also cited trials showing 47% less muscle soreness at 48 hours and 12% better muscle performance.
Infrared sauna is moving from product to infrastructure
A Forbes Business Council piece published 27 August 2026 described the infrared sauna market as entering a more mature stage and shifting from wellness products toward wellness infrastructure. For a studio whose equipment package runs $13,600 to $158,500 *, maturity means the specification matters more than novelty, and that replacement cycles start to show up in the accounts.
Wages rose 3.1% where payroll is just over a fifth of revenue
The Bureau of Labor Statistics reported on 31 July 2026 that total compensation rose 3.3% over the twelve months to June, wages 3.1% and benefits 3.8%. At 21.8% of revenue that costs about 0.7 points *, under a sixtieth of the operating margin, against a fifth or more in a staff-intensive format.
Sources: Global Wellness Institute, red light therapy and recovery, 28 May 2026 · Forbes Business Council, infrared sauna market, 27 August 2026 · BLS Employment Cost Index, June 2026, released 31 July 2026
Top performers
What separates the top Degree Wellness performers
Three Degree Wellness affiliate studios reported 2025 revenue of $521,743 to $701,377. Studio 1 kept 53.1% of revenue as net operating income, and Studio 3 kept 34.5%.
- Rent and payroll.Degree Wellness Studio 1 paid rent of 7.7% of revenue and payroll of 18.4%. Studio 3 paid 15.9% and 24.3% *.
- Studio age.Degree Wellness Studio 1 was trading before 2025 began. Studios 2 and 3 had been open under twelve months at the start of 2025.
- Who runs the studio.A Degree Wellness general manager costs $52,004 a year at the three-studio average, 8.7% of revenue *.
Top performers
How far apart the locations are
Degree Wellness Studio 1 billed $701,377 in 2025, 1.34 times Studio 2’s $521,743 *. The three studios are affiliate-owned and sit in and around Jacksonville, Florida. The studio figures are in the tables on the Model tab.
Brand charges
| Charge | Amount | On the average studio * |
|---|---|---|
| Continuing franchise fee | 7% of gross revenues | $42,097 |
| Brand development fund | 1% of gross revenues, raisable to 2% | $6,014 |
| Paid to the brand today | 8% of gross revenues | $48,111, or 8.0% |
| Local marketing requirement | $2,500 a month of your own spend | $30,000 |
| Advertising cooperative | $0 today; $1,000 a month once formed, capped at $5,000 | $0, or $12,000 to $60,000 |
A co-operative at its $5,000 monthly ceiling would add $60,000 a year, or 10.0% of the same studio’s revenue *.
A co-operative can add to the advertising cost. A cooperative starts at $1,000 a month once established and can reach $5,000 by majority vote, which on the average studio is 2.0% to 10.0% of revenue *. Ask how many studios it takes to form one.
Opening late costs $500 a month, then $1,000, then $2,000. The charge starts twelve months after signing, steps up at fifteen and again at eighteen, and runs until the doors open. With 80 agreements signed and unopened, that clause applies to most of the people who have signed one.
The marketing requirement is $30,000 a year. Add the $12,000 of presale marketing in the four months before opening and a first-year studio carries $42,000 of committed advertising *, 7.0% of the average studio’s eventual revenue, spent while it is ramping.
Every percentage charge runs on gross revenues. There is one royalty rate and one fund rate for every studio, with the fund capable of doubling to 2%, which would cost the average studio a further $6,014 a year *.
Cost to open
| Line | Low | High |
|---|---|---|
| Leasehold improvements | $134,300 | $413,400 |
| Initial equipment package | $13,600 | $158,500 |
| Franchise licence fee | $49,500 | $49,500 |
| Lease security deposit, three months | $12,000 | $37,700 |
| Furniture, fixtures and equipment | $27,800 | $35,300 |
| Additional funds, three months | $20,000 | $45,000 |
| Layout, architect, engineer and permits | $16,800 | $23,700 |
| Real estate and construction management | $16,500 | $16,500 |
| Presale marketing | $12,000 | $15,000 |
| Initial inventory and supplies | $11,600 | $15,500 |
| Initial training fee | $8,000 | $8,000 |
| Point-of-sale system | $5,700 | $7,500 |
| Exterior signage | $3,300 | $12,000 |
| Professional fees and licences | $2,700 | $6,000 |
| Training programme expenses | $1,000 | $2,500 |
| Insurance | $1,000 | $2,400 |
| Total | $335,800 | $848,500 |
Both columns add exactly to the printed totals, and the stated $57,500 payable to the brand matches the fee plus the training fee exactly *.
The equipment package ranges from $13,600 to $158,500, 11.7 times *. Saunas, plunges, light beds and nutrient delivery are the product.
$57,500 reaches the brand, which is 17.1% of the lowest-cost build *: the $49,500 fee and the $8,000 training fee, with everything else going to landlords, contractors and approved suppliers.
Against the average studio the cheapest build returns $1.79 of revenue a dollar *, and $0.64 of owner-operator income *, a 1.6-year payback owner-operated and 2.1 years with a manager *. Those paybacks rest on three studios in one city.
Additional funds of $20,000 to $45,000 covers three months against $42,000 of first-year marketing commitments *. Hold more: the $30,000 requirement alone is above 8% of revenue until the studio passes $375,000 a year *.
Buying several studios lowers the fee to $32,000. Two studios cost $91,500 in development fees, three $129,500, five $199,500 and each studio from the sixth to the tenth $32,000, against $49,500 for a single studio, or $45,750 and $43,167 each at two and three *.
Questions
How much does a Degree Wellness franchise make?
Three affiliate Degree Wellness studios averaged $601,389 of revenue in 2025, according to Item 19 of Degree Wellness’ 2026 FDD, issued 30 April 2026. Fees paid to Degree Wellness come to about 8%* of sales. A Degree Wellness franchise costs $335,800 to $848,500 to open.
What should a studio bill?
Three affiliate studios billed $521,743, $581,049 and $701,377 in 2025, averaging $601,389. Two of the three were in their second year. All three are in or around Jacksonville, Florida, where the brand has been trading for years, so treat them as the upper end, in a market that already knows the name.
What does an owner keep?
35.6% of revenue working in the studio and 26.9% with a general manager, on average *, $213,858 and $161,855. Both figures leave out tax, depreciation, interest and any reserve for replacing the equipment, and the lowest of the three studios returns 18.0% with a manager.
Why are the margins so high?
Payroll is 21.8% of revenue. Heat, cold and light run without a person for every session. Cost of goods adds only 9.3%, which leaves 90.7% of gross profit to work with before rent.
How much of sales goes to the brand?
8.0% at the average studio, 7% royalty and 1% brand fund *. The owner also spends $30,000 a year on required local marketing. The fund can double to 2%, and an advertising cooperative, once formed, starts at $1,000 a month and can reach $5,000.
What should I make of 80 signed agreements?
Two franchised studios are trading and 80 agreements are signed with the studio still to open, of which 79 are projected to open next year. Florida holds 13 and Texas 12. Set against the schedule that charges $500 a month from twelve months after signing, rising to $2,000 at eighteen, the queue matters to the cash of everyone in it.
What is the biggest risk in the numbers?
Rent. Studio 3 pays 15.9% of revenue against Studio 1’s 7.7%, and that single line accounts for most of the 18.6-point gap in their operating margins *. In a format where payroll is fixed low and the equipment is bought once, rent is the line that varies most between studios.
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Every figure here comes from Degree Wellness Franchise, LLC’s 2026 Franchise Disclosure Document and is unaudited by us, we are unaffiliated with the brand, calculations of our own are marked with an asterisk where they appear, and the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise or financial, legal or tax advice. Degree Wellness® is a registered trademark of its owner.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Degree Wellness Franchise, LLC, 2026 Franchise Disclosure Document, issued 30 April 2026.