What is the interest rate a Bojangles franchisee must pay on understated payments revealed during an inspection, from the date the amount was due until paid?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if an inspection reveals that a franchisee has understated any payments in their report to Bojangles, the franchisee must immediately pay the understated amount upon demand. In addition to the understated amount, the franchisee will also have to pay interest on that amount.
The interest will be calculated 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. However, if the maximum interest rate permitted by law is lower than this, the franchisee will only be required to pay the maximum legal rate.
Furthermore, if the understatement in any report is five percent (5%) or more, the Bojangles franchisee will also be responsible for reimbursing Bojangles for all costs and expenses associated with the inspection. This includes, but is not limited to, reasonable accounting and attorneys' fees. These remedies are in addition to any other remedies that Bojangles may have available to them.