What actions related to a Bojangles restaurant's operation or sale can lead to default under the Development Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Franchisee or of the Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request.
In addition, Franchisor may request, and Franchisee shall provide within five (5) business days thereafter, a performance bond from Franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion.
(9) If any other Franchise Agreement or Development Agreement for Bojangles restaurants or any other agreements with Franchisor or its affiliates entered into by Franchisee or its affiliates (or any beneficial owner(s) of Franchisee or its affiliates) is terminated based upon Franchisee's or its affiliates' (or any beneficial owner(s) of Franchisee's or its affiliates') default thereunder;
(10) If Franchisee, after curing a default pursuant to Paragraph XV.C. hereof, commits the same, or a substantially similar, default again within one hundred eighty (180) days after the prior default occurred, whether or not cured after notice; or
(11) If Franchisee repeatedly is in default under Paragraph XV.C. hereof for failure to comply with any of the requirements imposed by this Agreement, whether or not cured after notice.
C.
Except as otherwise provided in Paragraphs XV.A. and XV.B. of this Agreement, Franchisee shall have ten (10) days for a monetary default and thirty (30) days for any other default after its receipt from Franchisor of a written notice of default within which to remedy any default hereunder and to provide evidence thereof to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, several actions related to the operation or sale of a Bojangles restaurant can lead to default under the Development Agreement. These include ceasing to operate or abandoning the restaurant, attempting to do so, or entering into an agreement to sell the restaurant without Bojangles' prior written consent. This also applies to selling or attempting to sell the real property where the restaurant is located, or substantially all assets of the franchisee or the restaurant, or the real property lease, without prior consent from Bojangles.
In the event of such occurrences, Bojangles has the option to request a statement of intentions and assurances from the franchisee, to be delivered within 24 hours. Bojangles may also request a performance bond from the franchisee, with the amount and issuing entity at Bojangles' discretion.
Furthermore, default can occur if any other Franchise Agreement or Development Agreement for Bojangles restaurants, or any other agreements with Bojangles or its affiliates, is terminated due to the franchisee's default. A franchisee can also be in default if they commit the same or a substantially similar default again within 180 days after curing a previous default, or if they repeatedly default on requirements imposed by the Development Agreement, whether or not these defaults are cured after notice. Generally, a franchisee has ten days to cure a monetary default and thirty days to cure any other default after receiving written notice from Bojangles.