What is the maximum interest rate that can be charged annually to Focalpoint Coaching franchisees in California?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Late Fees and Interest. Section 3.I of the Franchise Agreement is revised to reflect that the maximum interest rate in California currently is 10% annually, notwithstanding any statement to the contrary contained in Section 3.I of the Franchise Agreement.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the maximum interest rate that can be charged annually to franchisees in California is 10%. This information is specified in Item 22, which includes state-specific addenda. This addendum modifies the standard franchise agreement to comply with California law. Specifically, it amends the section regarding late fees and interest to reflect the state's maximum allowable interest rate.
For a prospective Focalpoint Coaching franchisee in California, this means that any late payments or outstanding balances will not accrue interest exceeding 10% per year. This provides a degree of financial certainty and protection, ensuring that interest charges remain within legal limits. It is important for franchisees to be aware of this rate and to ensure that their franchise agreement reflects this cap.
This addendum serves to protect the franchisee from potentially higher interest rates that might be specified in the standard franchise agreement, ensuring compliance with California's regulations. Franchisees should carefully review the state addendum and consult with legal counsel to fully understand their rights and obligations under California law.