What is the reference point for determining the highest interest rate Fitstop can charge?

Question

Accepted Answer

| Indemnification                   | The costs and expenses we incur in connection with your breach or default under your Franchise Agreement or otherwise in the ownership and operation of your Franchised Business.                            | As incurred by you.                                                             | You are solely responsible and must indemnify and hold us harmless for all loss, damage, claims or demands arising from your Franchise including, but not limited to, any joint employment claims.                              |
|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Annual Convention | We expect this amount to be around \$1,500 to \$2,000 per attendee | Paid monthly by you. | You will also be responsible for covering the costs that attendees incur in connection with attending any such event. |
| Fee |  |  |  |
| Merchant payment processing costs | Then-current amount charged by our Approved Supplier (if applicable)  Currently, these fees are estimated to be between 2% and 4% of Gross Revenue generated by your Franchised Business on an ongoing basis | Payable immediately once collected by the Current Billing/POS Provider | These amounts are payable to our third-party Approved Supplier for such services as of the Issue Date. |
| Interest and/or Late Fees | The lesser of (i) 18% per annum, and (ii) the highest rate permitted for commercial transactions under applicable law | If and as incurred and invoiced | Please note that the maximum interest rate in the State of California amounts to 10% per annum.  These amounts may be charged in connection with any fees or amounts that are past due and owing under the Franchise Agreement. |

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What is the reference point for determining the highest interest rate Fitstop can charge?

Answer from 2024 FDD Document

What This Means (2024 FDD)

Indemnification	The costs and expenses we incur in connection with your breach or default under your Franchise Agreement or otherwise in the ownership and operation of your Franchised Business.	As incurred by you.	You are solely responsible and must indemnify and hold us harmless for all loss, damage, claims or demands arising from your Franchise including, but not limited to, any joint employment claims.
Annual Convention	We expect this amount to be around $1,500 to $2,000 per attendee	Paid monthly by you.	You will also be responsible for covering the costs that attendees incur in connection with attending any such event.
Fee
Merchant payment processing costs	Then-current amount charged by our Approved Supplier (if applicable) Currently, these fees are estimated to be between 2% and 4% of Gross Revenue generated by your Franchised Business on an ongoing basis	Payable immediately once collected by the Current Billing/POS Provider	These amounts are payable to our third-party Approved Supplier for such services as of the Issue Date.
Interest and/or Late Fees	The lesser of (i) 18% per annum, and (ii) the highest rate permitted for commercial transactions under applicable law	If and as incurred and invoiced	Please note that the maximum interest rate in the State of California amounts to 10% per annum. These amounts may be charged in connection with any fees or amounts that are past due and owing under the Franchise Agreement.