What is the maximum interest rate Deer Solution can legally charge in California?

According to Deer Solution's 2025 Franchise Disclosure Document, the maximum interest rate allowed by law in the State of California is 10%. This disclosure clarifies Item 6, "Other Fees," within the FDD. For a prospective franchisee, this means that any fees charged by Deer Solution that are overdue and subject to interest cannot exceed a 10% annual interest rate in California.

This amendment ensures that Deer Solution complies with California state law regarding interest rates. Franchise agreements often include provisions for late fees or interest on overdue amounts, so this clarification is important for franchisees in California to understand their rights and obligations. It is a legal protection ensuring that the franchisor cannot impose excessive interest charges that would be considered illegal under California law.

Prospective franchisees should take note of this amendment and ensure that the franchise agreement adheres to this limit. It is advisable to consult with a legal professional to review the franchise agreement and confirm that all terms comply with California law, especially concerning fees and interest rates. This helps protect the franchisee from potentially unfair or unlawful financial burdens.