What is the maximum annual interest rate that Buona can charge in California?

According to Buona's 2025 Franchise Disclosure Document, the maximum annual interest rate that Buona can charge a franchisee in California is 10%. This information is provided in an addendum specific to California, which modifies Item 6 of the standard Franchise Disclosure Document concerning "Other Fees".

This 10% cap is important for prospective Buona franchisees in California to understand, as it limits the amount of interest Buona can charge on any overdue payments or fees. It provides a degree of financial protection, ensuring that interest charges do not become excessively burdensome. Franchise agreements often include provisions for interest on late payments, so knowing this limit helps franchisees budget and manage their finances effectively.

It is important to note that this rate applies specifically to California due to state-specific franchise laws. Franchisees in other states may be subject to different interest rate limits as dictated by the laws of those states. Therefore, California franchisees should be aware of this protection, while franchisees in other states should consult their own state's regulations and the standard FDD to understand the interest rates applicable to them.