What rate of interest will be applied to any underpayment found during an audit of a Degree Wellness franchise?

According to Degree Wellness's 2025 Franchise Disclosure Document, the interest rate charged to a California franchisee for underpayment will comply with the California Constitution. The interest rate will not exceed either (a) 10% annually or (b) 5% annually plus the prevailing interest rate charged to banks by the Federal Reserve Bank of San Francisco, whichever is higher. This disclosure is specific to California franchisees.

This means that if a Degree Wellness franchisee in California under-reports their gross revenues or underpays any Continuing Franchise Fee or Fund contribution, the interest charged on the underpayment will be calculated based on the higher of the two rates mentioned above, ensuring compliance with California law.

For prospective Degree Wellness franchisees in California, it's crucial to understand these interest rate limitations, as they protect franchisees from excessively high interest charges on underpayments. Franchisees outside of California should inquire about the interest rates that would apply to them, as this disclosure only covers California franchisees.