What is the maximum interest rate that Bumper Man can charge in California?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 11 of the Disclosure Document is supplemented by the following language:
The interest rate in California cannot exceed 10%.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the maximum interest rate that Bumper Man can charge a franchisee in California is 10%. This disclosure supplements Item 11 of the Franchise Disclosure Document, providing additional information specific to California franchisees. This ensures that the interest rate complies with California state law.
For a prospective Bumper Man franchisee in California, this means that any loan or financing agreement with Bumper Man will not exceed a 10% interest rate. This is a protective measure for franchisees, ensuring they are not subjected to excessively high interest rates that could negatively impact their business's financial health. Franchise agreements often involve financing arrangements, and this disclosure provides clarity on the legal limits of interest rates in California.
It is important for potential franchisees to review Item 11 of the FDD in conjunction with this addendum to fully understand the terms and conditions related to financing and interest rates. This ensures compliance with California's franchise laws, which are designed to protect franchisees from potentially unfair or overbearing financial terms.