When are the monthly royalty and advertising contribution payments due to Bojangles?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 XI.B. hereof.
- E. Franchisor reserves the right to require that all payments required under 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.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees are required to make monthly royalty and advertising contribution payments by the 15th day of each month. These payments are based on the Gross Sales made during the preceding month. Franchisees must submit these payments along with any reports or statements required by Paragraph XI.B. of the franchise agreement.
Bojangles retains the right to require that all payments be directly drafted from the franchisee's account. If a payment is not received by the 15th, 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 Bojangles may pursue for the late payment. It is crucial for prospective franchisees to understand these payment terms and ensure they can meet the deadlines to avoid incurring interest charges and potential penalties. Maintaining timely payments is essential for a healthy franchisor-franchisee relationship and the continued operation of the Bojangles franchise.