What actions can Bojangles take if a franchisee is convicted of a felony?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
isdiction; or if proceedings for a composition with creditors under any state or federal law should be instituted by or against Franchisee.
- B. Upon occurrence of any of the following events, Franchisee shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisee:
- (1) If Franchisee fails to: obtain Franchisor's approval of a site for the Restaurant by the Site Approval Deadline; commence construction of the Restaurant and pay the Franchise Fee by the Construction Commencement Deadline;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee or any shareholder or member of the franchisee is convicted of a felony, Bojangles has the option to terminate the Franchise Agreement immediately upon the franchisee receiving notice. Bojangles does not have to provide an opportunity for the franchisee to correct or 'cure' the issue. This termination is effective immediately.
This clause in the franchise agreement protects Bojangles's brand and reputation. A felony conviction against a franchisee could negatively impact the public's perception of the franchise, and this provision allows Bojangles to act swiftly to sever ties. The agreement also specifies that conviction of a crime involving moral turpitude, or any other crime or offense that is reasonably likely, in the sole opinion of Bojangles, to adversely affect the System, the Proprietary Marks, the Trade Dress, the goodwill associated therewith, also allows Bojangles to terminate the agreement.
For a prospective franchisee, this highlights the importance of maintaining a clean criminal record and ensuring that all shareholders or members associated with the franchise do as well. It also demonstrates the significant power Bojangles holds to protect its brand and system, as a franchisee's actions outside of the business can have direct consequences on their franchise agreement.