In California, are the provisions in Bojangles' franchise agreements regarding termination upon bankruptcy always enforceable?

According to Bojangles' 2025 Franchise Disclosure Document, the franchise agreements contain provisions for termination upon bankruptcy. However, these provisions may not be enforceable under federal bankruptcy law. This means that while the agreement allows Bojangles to terminate the franchise if the franchisee declares bankruptcy, federal law might override this clause, potentially preventing Bojangles from terminating the agreement solely based on the bankruptcy filing. This is particularly relevant for prospective franchisees in California, as the enforceability of such clauses can significantly impact their rights and obligations during financial distress. Franchisees should consult with a legal professional to fully understand their rights and obligations in case of bankruptcy.

Furthermore, the FDD states that if the franchise agreements contain a provision that is inconsistent with California law, the law will control. This statement is crucial for potential Bojangles franchisees in California because it clarifies that certain standard clauses in the franchise agreement might not be fully enforceable in California. This protection ensures that franchisees are not bound by terms that violate California's specific franchise laws, offering a degree of legal security.

In addition to bankruptcy, other provisions within Bojangles' franchise agreements, such as those concerning choice of law, choice of forum, covenants not to compete, and general releases upon transfer or renewal, may not be enforceable under California law. This underscores the importance of prospective franchisees seeking legal counsel to review the franchise agreement and understand which provisions are subject to California law and may not be fully enforced as written. This due diligence can help franchisees avoid potential disputes and ensure they are aware of their rights and obligations under California law.