What are the consequences if a Bojangles franchisee fails to procure or maintain the required insurance?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Should Franchisee, for any reason, fail to procure or maintain the insurance required by this Agreement, as such requirements may be revised from time to time by Franchisor in the Manual or otherwise in writing, Franchisor shall have the right and authority (without, however, any obligation to do so) immediately to procure such insurance and to charge same to Franchisee, which charges, together with a reasonable fee for Franchisor's time and expenses in so acting, shall be payable by Franchisee immediately upon notice.
The foregoing remedies shall be in addition to any other remedies Franchisor may have.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee fails to procure or maintain the required insurance, Bojangles has the right, but not the obligation, to procure the insurance themselves. Bojangles can then charge the franchisee for the cost of the insurance, along with a reasonable fee for their time and expenses in obtaining the insurance. The franchisee is required to pay these charges immediately upon notice from Bojangles.
This clause in the franchise agreement protects Bojangles from potential liabilities and ensures that all franchise locations maintain adequate insurance coverage. It also ensures that Bojangles is listed as an additional insured on the franchisee's policies, with a 30-day notice to Bojangles if the policy is canceled. This protects Bojangles from liability due to the franchisee's actions.
For a prospective franchisee, this means that failing to maintain the required insurance can result in unexpected expenses and fees charged by Bojangles. It is crucial to understand and comply with all insurance requirements outlined in the franchise agreement and the operations manual to avoid these potential costs and maintain a good relationship with Bojangles. The franchisee is also responsible for providing Bojangles with copies of all insurance policies and evidence of premium payments at least 30 days before the expiration of each policy.