How does the Bojangles's Item 6 interest fee relate to the franchisor's bankruptcy in Item 4?

Question

Accepted Answer

| Type of Fee1 | Amount | Due Date | Comments |
|---|---|---|---|
| Audit | Deficiencies in amounts owed, plus interest | Payable upon invoice. | You also must pay all costs and expenses connected with the audit if an audit reveals an understatement of 5% or more. |
| Interest | 1.5% per month compounded monthly or the maximum rate permitted by law, whichever is less | Payable upon demand. | Payable on any overdue amount or underpayment from the date such amount was due until paid. |
| Transfer | $5,000 per Restaurant | Payable prior to consummation of transfer. | We have the right to approve all transfers. Payable only if a transfer, alone or together with other previous, simultaneous, or proposed transfers, would have the effect of transferring a controlling interest in you, the Restaurant or in any Development or Franchise Agreement. |
| Renewal | 50% of franchise fee in effect at time of renewal | Payable upon signing of Renewal Franchise Agreement prior to end of then- current term. | The Bojangles Express Franchise Agreement does not provide for renewal rights. |
| New Product and Supplier Testing | Our reasonable expenses (estimated at $4,800 - $12,900) | Payable upon demand. | If you request our authorization to sell new products or use an alternate supplier of products or services, you must pay our reasonable expenses to evaluate the supplier. See Item 8. |
| Training – Optional Programs | Then-current training fee | Payable upon demand. | Payable for optional training programs and seminars we may offer from time to time. |
| On-site support | $2,500 per person per week | Payable upon demand. | If you request additional on-site personnel support for a Restaurant opening or at any time thereafter, we will charge you $2,500 per person per week. |
| Costs and Attorneys’ Fees | Our costs and expenses | As incurred | If we prevail in litigation regarding enforcement of the terms of any agreement, you must pay our attorneys’ fees and costs. |
| Reimbursement of Insurance Costs | Cost of procuring insurance and our expenses | Upon demand | Payable if you fail to procure or maintain required insurance and we procure such insurance. |

How does the Bojangles's Item 6 interest fee relate to the franchisor's bankruptcy in Item 4?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee1	Amount	Due Date	Comments
Audit	Deficiencies in amounts owed, plus interest	Payable upon invoice.	You also must pay all costs and expenses connected with the audit if an audit reveals an understatement of 5% or more.
Interest	1.5% per month compounded monthly or the maximum rate permitted by law, whichever is less	Payable upon demand.	Payable on any overdue amount or underpayment from the date such amount was due until paid.
Transfer	$5,000 per Restaurant	Payable prior to consummation of transfer.	We have the right to approve all transfers. Payable only if a transfer, alone or together with other previous, simultaneous, or proposed transfers, would have the effect of transferring a controlling interest in you, the Restaurant or in any Development or Franchise Agreement.
Renewal	50% of franchise fee in effect at time of renewal	Payable upon signing of Renewal Franchise Agreement prior to end of then- current term.	The Bojangles Express Franchise Agreement does not provide for renewal rights.
New Product and Supplier Testing	Our reasonable expenses (estimated at $4,800 - $12,900)	Payable upon demand.	If you request our authorization to sell new products or use an alternate supplier of products or services, you must pay our reasonable expenses to evaluate the supplier. See Item 8.
Training – Optional Programs	Then-current training fee	Payable upon demand.	Payable for optional training programs and seminars we may offer from time to time.
On-site support	$2,500 per person per week	Payable upon demand.	If you request additional on-site personnel support for a Restaurant opening or at any time thereafter, we will charge you $2,500 per person per week.
Costs and Attorneys’ Fees	Our costs and expenses	As incurred	If we prevail in litigation regarding enforcement of the terms of any agreement, you must pay our attorneys’ fees and costs.
Reimbursement of Insurance Costs	Cost of procuring insurance and our expenses	Upon demand	Payable if you fail to procure or maintain required insurance and we procure such insurance.