What is the maximum repayment term that Degree Financial may offer to Degree Wellness franchisees?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Financial, an affiliate, may offer equipment financing to qualified franchisees. While Degree Financial is not obligated to provide financing, it may finance up to $151,000 of the required equipment, depending on creditworthiness, collateral, and financing policies.

The interest rate is variable, set at Prime + 7%. Franchisees must sign a promissory note and make monthly payments via automatic bank draft, starting about a month after training.

Importantly, the repayment term is negotiable, but Degree Financial caps it at a maximum of 5 years. Degree Financial requires a security interest in the Studio franchise and a security agreement granting them a security interest in all assets, including after-acquired property. Franchisees can prepay the note without penalty. Defaulting on payments may lead to the entire balance becoming due, along with responsibility for court costs and attorney's fees incurred during debt collection, and potential termination of the franchise agreement.