What interest rate can a Degree Wellness franchisee expect if financing equipment through the affiliate?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
rms will vary depending on your credit history and score. Our affiliate will finance up to $151,000 with no money
Source: Item 7 — Estimated Initial Investment (FDD pages 22–26)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees may be able to finance a portion of their initial equipment package through an affiliate of Degree Wellness. The FDD states that the affiliate will finance up to $151,000 with no money down, at an interest rate of prime plus 7%, for a five-year period. This financing option is specifically for the initial equipment package. The actual financing terms available to a franchisee will depend on their individual credit history and score.
This is a potentially significant benefit for franchisees who may not have sufficient capital to purchase all the necessary equipment upfront. However, it's important to note that the interest rate is variable, as it is tied to the prime rate, which can fluctuate over time. A prime plus 7% interest rate means that the franchisee will pay the current prime rate plus an additional 7%. For example, if the prime rate is 5%, the franchisee's interest rate would be 12%.
Prospective franchisees should carefully consider the terms of the financing, including the interest rate, repayment schedule, and any associated fees. They should also compare this financing option to other financing options available to them, such as loans from banks or credit unions, to determine which option is the most favorable. It is also important to consider that the amount financed through Degree Wellness's affiliate is capped at $151,000, so franchisees may need to seek additional financing to cover the full cost of the initial equipment package, depending on their specific needs.
It is also important to note that these figures do not include any proposed tariffs that could significantly impact the price of imported goods. This could affect the overall cost of the initial equipment package and the amount that needs to be financed. Franchisees should inquire about any potential tariffs and their impact on equipment costs before making any decisions.