What is the highest interest rate Cinnaholic may legally charge a franchisee in California?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
We may be limited in the amount of interest we may charge you as discussed in Item 6 of this Disclosure Document. Currently the highest interest rate permitted by law in California is 10%.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the highest interest rate that Cinnaholic may legally charge a franchisee in California is 10%. This is mentioned in Item 11, which discusses various legal considerations and disclosures relevant to franchisees, particularly those in California.
For a prospective Cinnaholic franchisee in California, this means that any financing arrangements with Cinnaholic that involve interest charges are capped by state law at 10%. This provides a degree of protection against excessively high interest rates. Franchisees should ensure that any loan agreements or financing terms comply with this legal limit.
It is important for potential franchisees to consult with legal and financial advisors to fully understand the implications of this interest rate cap and how it applies to their specific circumstances. This is especially crucial when reviewing the franchise agreement and any related financial documents to ensure compliance with California law.