Does the Floors To Go franchise agreement mention interest on late payments?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Any interest rate charged to a California franchisee shall comply with the California Constitution. The interest rate shall not exceed either (a) 10% annually or (b) 5% annually plus the prevailing interest rate charged to banks by the Federal Reserve Bank of San Francisco, whichever is higher.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the California Disclosure section addresses interest rates charged to franchisees in California. It states that any interest rate must comply with the California Constitution and cannot exceed the higher of either 10% annually or 5% annually plus the prevailing interest rate charged to banks by the Federal Reserve Bank of San Francisco.
This disclosure is specific to California franchisees and ensures that interest rates charged by Floors To Go comply with California law. For prospective franchisees in California, this provides a cap on the interest that can be charged on any payments.
For franchisees outside of California, the FDD excerpts do not provide specific information regarding interest on late payments. A prospective franchisee should consult the franchise agreement and ask Floors To Go about the terms and conditions related to late payments and associated interest charges.