What is the base interest rate that can be charged to a California Deka Lash franchisee?

According to the 2024 Deka Lash Franchise Disclosure Document, any interest rate charged to a franchisee in California must comply with the California Constitution. The interest rate cannot exceed the higher of two options: either 10% annually, or 5% annually plus the prevailing interest rate charged to banks by the Federal Reserve Bank of San Francisco.

This means that Deka Lash franchisees in California will not be subject to interest rates higher than what is allowed by California law. The interest rate charged will be determined by comparing a fixed rate of 10% with a variable rate that depends on the Federal Reserve Bank of San Francisco's rate plus 5%, and using whichever is higher.

For a prospective franchisee, it is important to stay informed about the Federal Reserve Bank of San Francisco's prevailing interest rates to understand the potential maximum interest rate that Deka Lash could legally charge. This knowledge can help in financial planning and in assessing the overall cost of financing related to the franchise.