What financial information is Bojangles required to provide to the franchisor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
rtified public accountant to consult with Franchisor, at Franchisee's expense, concerning the financial statements provided by Franchisee.
- 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 one-half 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.
XI. ADVERTISING
Recognizing the value of advertising, and the importance of the standardization of advertising programs to the furtherance of the goodwill and public image of the Bojangles System, the parties agree as follows:
A.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, franchisees must submit various financial documents to Bojangles for review or auditing. These include financial statements for each fiscal year, which may require consultation with the franchisee's independent certified public accountant at the franchisee's expense. Franchisees must also provide any other forms, reports, records, information, and data that Bojangles may reasonably request, in the format and at the times and places Bojangles specifies in the manual or in writing.
Bojangles retains the right to examine and copy the franchisee's books, records, and tax returns at any reasonable time, at Bojangles' expense. Bojangles can also conduct independent audits of the franchisee's books. If an inspection reveals that payments have been understated, the franchisee must immediately pay the understated amount plus interest. The interest rate is one and one-half percent (1½%) per month compounded monthly, or the maximum rate permitted by law, whichever is less, from the date the amount was due until paid.
Furthermore, if an inspection uncovers an understatement of five percent (5%) or more in any report, the franchisee is responsible for reimbursing Bojangles for all costs and expenses associated with the inspection, including reasonable accounting and attorneys' fees. These remedies are in addition to any other remedies Bojangles may have. This ensures Bojangles has access to comprehensive financial data and recourse in case of discrepancies, protecting the integrity of the franchise system.