When are the monthly payments for royalties and advertising contributions due to Bojangles?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
other expenses incurred by Franchisor in granting this franchise and for Franchisor's lost or deferred opportunity to franchise others.
- B. Franchisee shall pay to Franchisor a continuing monthly royalty fee in an amount equal to four percent (4%) of the Gross Sales of the Restaurant, as defined in Paragraph IV.E. hereof.
- C. Franchisee shall pay to Franchisor a monthly advertising contribution, for use by the Bojangles Marketing Development Fund established by Franchisor, as provided in Paragraph XI.E. hereof, in an amount equal to one percent (1%) of the Gross Sales of the Restaurant.
- D. All monthly payments required by this Paragraph IV. shall be paid to Franchisor by the fifteenth (15th) day of each month on Gross Sales made during the preceding month, and shall be submitted to Franchisor together with any reports or statements required under Paragraph X.B. hereof.
- E. Franchisor reserves the right to require that all payments required by this Agreement be directly drafted by Franchisor from Franchisee's account. Any payment or report not actually received by Franchisor on or before such date shall be deemed overdue. If any payment is overdue, Franchisee shall pay Franchisor, in addition to the overdue amount, interest on such amount from the date it was due until paid at the equivalent of one and one-half percent (1½%) per month compounded monthly, or the maximum rate permitted by law, whichever is less. Entitlement to such interest shall be in addition to any other remedies Franchisor may have.
- F. As used in this Agreement, "Gross Sales" shall include all revenue from the sale of all services and products related to the Franchised Business, whether for cash or credit and regardless of collection in the case of credit; provided, however, that "Gross Sales" shall not include any sales taxes or other taxes collected from customers by Franchisee for transmittal to the appropriate taxing authority.
V.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees are required to make monthly payments for both royalty fees and advertising contributions. These payments are due to Bojangles by the fifteenth day of each month. The payments are based on the Gross Sales made during the preceding month. Franchisees must also submit any required reports or statements along with their payments.
Bojangles retains the right to directly draft these payments from the franchisee's account. If a payment or report is not received by the due date, it is considered overdue. In the event of an overdue payment, Bojangles will charge interest on the outstanding amount. The interest rate is the equivalent of one and one-half percent (1½%) per month, compounded monthly, or the maximum rate permitted by law, whichever is less.
This interest charge is in addition to any other remedies that Bojangles may pursue for the late payment. It is important for prospective franchisees to understand these payment terms and ensure they can meet the monthly deadlines to avoid incurring interest charges and potential penalties. Gross Sales includes all revenue from the sale of all services and products related to the Franchised Business, whether for cash or credit and regardless of collection in the case of credit; however, Gross Sales does not include any sales taxes or other taxes collected from customers by Franchisee for transmittal to the appropriate taxing authority.