What credit standards must a Degree Wellness franchisee meet to qualify for financing from Degree Financial?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
owned by you, if you do not pay any loans payable to us and or Degree Financial in full.
You must qualify to purchase a franchise, meet our credit standards and be otherwise eligible for financing to qualify. Degree Financial currently charges a variable interest rate of Prime + 7%. If it agree to finance a portion of the required equipment, you must sign a promissory note when you sign your franchise agreement and pay the balance in monthly installments. Degree Financial does not require any money down.
You must make note payments by automatic bank draft. Some banks and other financial institutions may charge a fee for electronic transfers. Monthly payments will begin approximately 1 month after you complete Training. The length of the repayment term may be negotiable up to a maximum of 5 years.
Degree Financial requires a security interest in the Studio franchise. You must sign a security agreement granting it a security interest in all your assets, including after acquired property and it will file a UCC financing statement with the appropriate governmental authority. It has the right to require additional forms of security.
You may prepay the note at any time without penalty. If you default, Degree Financial may declare the entire remaining amount due.
Source: Item 10 — Financing (FDD pages 31–32)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, to qualify for financing from Degree Financial, a prospective franchisee must first qualify to purchase a franchise and meet Degree Wellness's credit standards. The decision to finance any equipment will be based partly on the franchisee's creditworthiness, the collateralization of the equipment, and any other collateral available to secure the financing, as well as Degree Wellness's then-current financing policies.
Degree Financial has no obligation to provide financing, but it may agree to finance a portion of the required equipment for qualified prospective franchisees under specified terms and conditions. The standard financing offered by Degree Financial is up to $151,000 if the franchisee meets certain requirements.
If Degree Financial agrees to finance a portion of the required equipment, the franchisee must sign a promissory note when signing the franchise agreement and pay the balance in monthly installments. Degree Financial currently charges a variable interest rate of Prime + 7%. Degree Financial requires a security interest in the Studio franchise and requires the franchisee to sign a security agreement granting it a security interest in all of the franchisee's assets, including after-acquired property. Degree Financial will also file a UCC financing statement with the appropriate governmental authority and has the right to require additional forms of security.