What is the interest rate charged on understated amounts owed to Ben Jerrys?

According to Ben Jerrys's 2025 Franchise Disclosure Document, if an inspection reveals that any contributions or payments have been understated in any statement or report to Ben Jerrys, the operator must immediately pay the understated amount upon demand. In addition to the understated amount, Ben Jerrys will charge interest from the date the amount was due until it is paid. The interest rate is 1.5% per month, or the maximum rate permitted by law, whichever is less.

This means that if a Ben Jerrys franchisee underreports their gross sales or other figures that affect payments to Ben Jerrys, they will not only have to pay the difference but also accrue interest on that amount. The interest continues to accumulate until the balance is paid in full. The 1.5% monthly interest rate is equivalent to an 18% annual interest rate, which is a significant penalty.

Ben Jerrys also has the right to audit the franchisee's books and records, and the franchisee is responsible for the costs associated with the inspection if the understatement is 3% or more. This provides an incentive for franchisees to be accurate and transparent in their reporting to avoid these additional costs and penalties.