What two interest rate limits apply to California Brain Balance franchisees?

According to Brain Balance's 2025 Franchise Disclosure Document, any interest rate charged to a franchisee in California must adhere to the California Constitution. This means the interest rate cannot exceed either 10% annually, or 5% annually plus the prevailing interest rate charged to banks by the Federal Reserve Bank of San Francisco, whichever of the two is higher.

This stipulation is included in the California Addendum to the franchise agreement, highlighting the importance of complying with California state law. This ensures that Brain Balance franchisees in California are protected from excessive interest rates, aligning with the state's regulations.

Prospective franchisees should be aware of these interest rate limits, especially if they anticipate needing financing or if any part of their agreement involves interest charges. It is advisable to consult with legal counsel to fully understand the implications of these regulations and how they apply to their specific situation as a Brain Balance franchisee in California.