What is the highest interest rate permitted by law in California for Alloy franchises?

According to Alloy's 2025 Franchise Disclosure Document, the highest interest rate permitted by law in California is 10%. This information is specifically included in an addendum to the franchise agreement required for California franchisees. This means that any interest rate exceeding 10% per annum would be considered unlawful in California.

For a prospective Alloy franchisee in California, this is a beneficial disclosure. It ensures that any financial arrangements, such as loans or deferred payments related to the franchise, comply with California law. This protects the franchisee from potentially predatory lending practices or contractual terms that violate state regulations.

It is important for potential franchisees to consult with legal counsel to fully understand their rights and obligations under California law, especially concerning financial matters. This disclosure provides a clear benchmark for evaluating the legality of interest rates in any agreements related to the Alloy franchise.