What financial information must a Bojangles developer provide to the franchisor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Franchisee and its shareholders shall also submit to Franchisor, for review or auditing, such other forms, reports, records, information, and data as Franchisor may reasonably designate, in the form and at the times and places reasonably required by Franchisor, upon request and as specified from time to time in the Manual or otherwise in writing.
- F. Franchisor or its designated agents shall have the right at all reasonable times to examine and copy, at Franchisor's expense, the books, records, and tax returns of Franchisee. Franchisor shall also have the right, at any time, to have an independent audit made of the books of Franchisee. If an inspection should reveal that any payments have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor the amount understated upon demand, in addition to interest from the date such amount was due until paid, at one and onehalf percent (1½%) per month compounded monthly, or the maximum rate permitted by law, whichever is less. If an inspection discloses an understatement in any report of five percent (5%) or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' fees). The foregoing remedies shall be in addition to any other remedies Franchisor may have.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee must submit various financial documents to Bojangles for review or auditing. Bojangles can request other forms, reports, records, information, and data as it reasonably designates, in the form and at the times and places reasonably required. These requests will be specified in the Manual or in writing. This allows Bojangles to monitor the financial health and performance of its franchises.
Bojangles retains the right to examine and copy the franchisee's books, records, and tax returns at reasonable times and at Bojangles's expense. Bojangles can also have an independent audit made of the franchisee's books at any time. If an inspection reveals that payments have been understated in any report, the franchisee must immediately pay the understated amount plus interest at 1.5% per month compounded monthly (or the maximum legal rate, if lower).
If the understatement in any report is 5% or more, the franchisee must also reimburse Bojangles for all costs and expenses connected with the inspection, including accounting and attorneys' fees. These remedies are in addition to any other remedies Bojangles may have. This clause incentivizes franchisees to maintain accurate financial records and report honestly to Bojangles, with significant penalties for non-compliance, especially in cases of substantial underreporting.