What interest rate does Degree Financial currently charge for financing to Degree Wellness franchisees?
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. If you do not pay our them the entire balance, and any accrued, unpaid interest, you may be responsible for the court costs and attorneys' fees Degree Financial incurs in collecting the debt from you. We may terminate your franchise agreement if you do not pay Degree Financial.
Source: Item 10 — Financing (FDD pages 31–32)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Financial may offer equipment financing to qualified franchisees. The interest rate charged is variable, set at Prime + 7%. This means the rate will fluctuate based on the current prime interest rate.
To qualify for financing, prospective Degree Wellness franchisees must meet the credit standards established by Degree Financial. If financing is approved, the franchisee will be required to sign a promissory note upon signing the franchise agreement and repay the balance in monthly installments. Degree Financial does not require a down payment for the financing.
The repayment term is negotiable, with a maximum length of 5 years. Payments must be made via automatic bank draft, and the first payment is due approximately one month after the completion of training. Degree Financial also requires a security interest in the Degree Wellness studio franchise and a security agreement granting them a security interest in all of the franchisee's assets, including after-acquired property. Franchisees can prepay the note at any time without incurring a penalty.
It's important to note that Degree Financial has no obligation to provide financing, and the decision to finance is based on factors such as creditworthiness, collateral, and the company's current financing policies. If a franchisee defaults on the loan, Degree Financial can declare the entire remaining amount due, and the franchisee may be responsible for court costs and attorney's fees incurred during collection. Failure to pay Degree Financial may also result in the termination of the franchise agreement.