What is considered a default under the Bojangles franchise agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
sor after the expiration of the ten (10) day or thirty (30) day period, as applicable, or such longer period as applicable law may require. Franchisee shall be in default hereunder for any failure to comply with any of the requirements imposed by this Agreement, including any matter enumerated in this Paragraph XIV.C., as it may from time to time reasonably be supplemented by the Manual, or to carry out the terms of this Agreement in good faith. Such defaults shall include, for example, but without limitation, the occurrence of any of the following events:
- (1) If Franchisee fails, refuses, or neglects promptly to pay any monies owing to Franchisor or its parents, subsidiaries or affiliates when due, or to submit the financial or other information required by Franchisor under this Agreement;
- (2) If Franchisee fails to pay or fails repeatedly to make prompt payment of undisputed amounts due to its suppliers, landlord, equipment lessors, or other third parties;
- (3) If Franchisee fails to maintain the Restaurant in a good, clean and wholesome manner, or fails to maintain or observe any of the other standards or procedures prescribed by Franchisor in this Agreement, the Manual, or otherwise in writing;
- (4) If Franchisee fails, refuses, or neglects to obtain Franchisor's prior written approval or consent as required by this Agreement;
- (5) If Franchisee denies Franchisor or its designee the right to inspect the Restaurant at reasonable times;
- (6) If Franchisee engages in any business or markets any service or product under a name or mark which, in Franchisor's opinion, is confusingly similar to the Proprietary Marks or uses the Trade Dress other than in connection with the Restaurant or uses any of Franchisor's products, procedures or methods in any other operation not authorized by Franchisor;
- (7) If Franchisee fails to comply with the in-term covenants in Paragraph XVI.A. hereof:
- (8) If a final judgment against Franchisee remains unsatisfied or of record for thirty (30) days or longer (unless supersedeas bond is filed);
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee can be in default of their franchise agreement for failing to comply with any requirements outlined in the agreement. This includes matters supplemented by the Manual or failure to carry out the terms of the agreement in good faith. The FDD provides examples of defaults, but notes that these are not the only ways a franchisee can be in default.
Specifically, a franchisee will be in default 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. Additionally, if a franchisee commits the same or a substantially similar default within 180 days of curing a previous default, they will be considered in default again, regardless of whether the default is cured after notice. Repeated defaults under Paragraph XIV.C, for failure to comply with the requirements of the agreement, also constitute a default, whether or not cured after notice.
Bojangles offers a period to cure defaults, with ten days allowed for monetary defaults and thirty days for other defaults after receiving written notice. If the default remains uncured within the specified time, Bojangles has the right to terminate the agreement, effective immediately upon the franchisee's receipt of notice after the cure period expires. A franchisee should carefully review the franchise agreement and operations manual to fully understand what actions or inactions could trigger a default and what steps they can take to avoid or cure a default.