As of this Degree Wellness Franchise Disclosure Document, what is the status of the franchise offering's effectiveness in California?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise offering is registered in California, meaning Degree Wellness is permitted to offer and sell franchises in the state. However, the FDD explicitly states that the registration of the franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner. This means that while Degree Wellness has met the requirements to offer franchises in California, the state does not guarantee the success or viability of the franchise. Prospective franchisees must conduct their own due diligence.

Furthermore, the California addendum to the Degree Wellness FDD includes additional disclosures required by California law. It states that the California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document. It also mentions that Section 31125 of the California Franchise Investment Law requires Degree Wellness to provide a disclosure document approved by the Commissioner of Financial Protection and Innovation before asking a franchisee to consider a material modification of their Franchise Agreement.

Additionally, the Degree Wellness FDD clarifies that any interest rate charged to a California franchisee must comply with the California Constitution, and cannot exceed either 10% annually, or 5% annually plus the prevailing interest rate charged to banks by the Federal Reserve Bank of San Francisco, whichever is higher. The FDD also states that California Business and Professions Code Sections 20000 and 20043 provide rights to the franchisee concerning termination and non-renewal of a franchise, and if the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.

Finally, the Degree Wellness FDD emphasizes that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under California franchise law, including fraud, or disclaim reliance on statements made by the franchisor. This provision supersedes any other term in any document executed in connection with the franchise, offering additional protection to franchisees in California.