What is the maximum interest rate Stretch Zone can charge annually in California?

According to Stretch Zone's 2025 Franchise Disclosure Document, the maximum interest rate that Stretch Zone can charge annually in California is 10%. This information is specifically included as an amendment to Item 6 of the FDD for California franchisees.

This means that if a Stretch Zone franchisee in California owes money to the franchisor, for example, on overdue royalty payments or for purchases from the franchisor, the highest interest rate that Stretch Zone can legally charge on that debt is 10% per year. Franchise agreements often include provisions for interest on late payments, so this disclosure clarifies the limit applicable in California.

Prospective franchisees in California should be aware of this limit and ensure that any franchise agreement complies with it. It is also important to note that usury laws, which regulate interest rates, can vary by state, so this disclosure is specific to California. Franchisees in other states should refer to the relevant addenda or consult with legal counsel to determine the applicable interest rate limits in their jurisdiction.