According to the Bojangles Development Agreement, what is the effect of a default?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
ames and other proprietary information in connection with Developer's development and operation of the Bojangles restaurant. Developer acknowledges and agrees that Developer shall not at any time, whether during the term of this Agreement or Franchise Agreement(s) executed pursuant hereto or after expiration or earlier termination of any or all of them, disclose any information obtained through such training or from any materials provided by Franchisor to Developer and pertaining to the Bojangles System to any third party other than employees of Developer directly involved in the operations of the Restaurant. Further, Developer agrees that during the term of this Agreement, and Franchise Agreement(s) executed pursuant hereto and after expiration or earlier termination of any or all of them, it shall not use any of such information or proprietary marks, including but not limited to processes, procedures, recipes and formulas, for any purpose other than the operation of the Bojangles restaurant and will take all steps necessary to prevent any other use of them. Without limiting the foregoing, Developer specifically agrees that it shall not during the term of this agreement or Franchise Agreement(s) executed pursuant hereto or after expiration or earlier termination of any or all of them, offer for sale at any location, other than a Restaurant being then operated pursuant to a specific Franchise Agreement then in effect, any food or drink products prepared using in whole or part the procedures, processes, techniques, recipes or formulas provided by Franchisor to Developer.
- C. Developer acknowledges that any failure to comply with the requirements of this Paragraph VII. will cause irreparable injury to Franchisor, and Developer agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in obtaining specific performance of, or an injunction against violation of, the requirements of this Paragraph VII.
VIII. DEFAULT
- A. The rights granted to Developer in this Agreement have been granted in reliance on Developer's representations and assurances, among others, that the conditions set forth in Paragraphs I. and IV. of this Development Agreement will be met by Developer in a timely manner.
- B. Developer shall be deemed to be in default under this Agreement, and all rights granted herein shall automatically terminate without notice to Developer, if Developer shall become insolvent or make a general assignment for the benefit of creditors; or if a petition in bankruptcy is filed by Developer or such a petition is filed against Developer and not opposed by Developer; or if Developer is adjudicated a bankrupt or insolvent; or if a bill in equity or other proceeding for the appointment of a receiver of Developer or other custodian for Developer's business or assets is filed and consented to by Developer; or if a receiver or other custodian (permanent or temporary) of Developer's assets or property, or any part thereof, is appointed by any court of competent jurisdiction; or if proceedings for a composition with creditors under any state or federal law should be instituted by or against Developer.
- C.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, a developer can be in default of their Development Agreement for several reasons. These include failing to meet the development schedule, being convicted of a felony, or failing to comply with the agreement's requirements. If a developer becomes insolvent or files for bankruptcy, the agreement can be automatically terminated without notice.
Upon the occurrence of a default event, Bojangles has the option to terminate the Development Agreement and all rights granted to the developer. This termination is effective immediately upon the developer's receipt of notice. However, Bojangles also has the discretion to choose other remedies instead of termination, as outlined in Paragraph VIII.E of the Development Agreement.
If the Development Agreement is terminated, the developer loses the right to establish or operate any Bojangles restaurant for which a Franchise Agreement has not yet been executed and delivered. Bojangles retains the right to establish restaurants or license others to do so within the assigned area, unless another agreement between Bojangles and the developer specifies otherwise. The Development Agreement also states that no right or remedy conferred upon Bojangles is exclusive of any other right or remedy available by law or in equity.