What actions can Bojangles take if a franchisee ceases to operate or abandons their restaurant, instead of immediately terminating the 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.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, if a franchisee ceases to operate or abandons their restaurant, Bojangles has options other than immediate termination of the franchise agreement. Bojangles may request a statement of intentions and assurances from the franchisee, which must be delivered in writing within 24 hours of the request. This allows Bojangles to understand the franchisee's perspective and potential plans to rectify the situation.
In addition to requesting a statement, Bojangles can also demand that the franchisee provide a performance bond within five business days. The amount of the bond and the issuing entity are determined at Bojangles' reasonable discretion. This bond serves as a financial guarantee that the franchisee will fulfill their obligations under the franchise agreement.
These measures provide Bojangles with flexibility in addressing situations where a franchisee's operation falters, allowing for potential resolution and continued operation of the restaurant rather than immediate termination. It also gives Bojangles some financial protection while the situation is being resolved.