What is the maximum interest rate that can be charged to a Basecamp Fitness franchisee in California?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the maximum interest rate that can be charged to a franchisee in California is 10%. This information is specifically included in the California Addendum within Item 17 of the FDD, which addresses renewal, termination, transfer, and dispute resolution. This addendum is crucial for prospective franchisees in California as it outlines how certain provisions of the standard franchise agreement are modified or superseded by California law.

For a potential Basecamp Fitness franchisee in California, this means that any agreement they enter into with the franchisor cannot legally charge them an interest rate higher than 10% on any outstanding balances or debts. This protection is afforded by California Civil Code Section 1671, which places restrictions on interest rates. Franchisees should be aware of this limit and ensure that their franchise agreement complies with California law.

It is important for prospective franchisees to consult with legal counsel to fully understand their rights and obligations under California law, especially concerning financial matters. This ensures that the franchisee is protected from potentially unfavorable terms and conditions that may conflict with state regulations. The California Addendum serves to highlight and clarify these state-specific protections.