What interest rate will a Bojangles franchisee be charged on understated payments revealed during an inspection, from the date the amount was due until paid?

According to Bojangles's 2025 Franchise Disclosure Document, if an inspection reveals that a franchisee has understated payments in any report to Bojangles, the franchisee must immediately pay the understated amount. In addition to the understated amount, Bojangles will charge interest from the date the amount was originally due until it is paid. The interest rate applied will be one and one-half percent (1½%) per month, compounded monthly, or the maximum rate permitted by law, whichever is less.

This policy ensures that Bojangles franchisees accurately report their sales and remit the correct royalty and advertising fees. The interest charge serves as a deterrent against underreporting and compensates Bojangles for the time value of money and the administrative costs associated with identifying and rectifying the underpayment. Franchisees should maintain meticulous records and ensure accurate reporting to avoid these penalties.

Furthermore, if the inspection reveals an understatement of five percent (5%) or more, the franchisee is also responsible for reimbursing Bojangles for all costs and expenses connected with the inspection. This includes, but is not limited to, reasonable accounting and attorneys' fees. These remedies are in addition to any other legal options Bojangles may pursue, highlighting the importance of accurate financial reporting and compliance with the franchise agreement.