What constitutes a default that allows Bojangles to terminate the franchise agreement immediately upon notice, without opportunity to cure?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 by the Construction Commencement Deadline; or construct, furnish, and open the Restaurant by the Opening Deadline;
(2) If Franchisee or any shareholder or member of Franchisee is convicted of a felony, a crime involving moral turpitude, or any other crime or offense that is reasonably likely, in the sole opinion of Franchisor, adversely to affect the System, the Proprietary Marks, the Trade Dress, the goodwill associated therewith, or Franchisor's interest therein;
(3) If Franchisee or any shareholder or member of Franchisee purports to transfer any interest in this Agreement, any rights hereunder, including but not limited to any rights to operate the Restaurant, franchise and license rights or obligations under this Agreement or any interest in Franchisee to any third party without Franchisor's prior written consent, contrary to the terms of Paragraph XIV. of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, there are several events that constitute a default, allowing Bojangles to terminate the franchise agreement immediately upon notice without providing an opportunity to cure the default. These include specific failures related to opening the restaurant, criminal convictions, and unauthorized transfers of interest in the agreement.
Specifically, Bojangles can terminate the agreement immediately if the franchisee fails to obtain site approval by the Site Approval Deadline, fails to commence construction by the Construction Commencement Deadline, or fails to open the restaurant by the Opening Deadline. Further, if the franchisee or any shareholder or member of the franchisee is convicted of a felony, a crime involving moral turpitude, or any other crime or offense that could adversely affect the Bojangles system, the Proprietary Marks, or the goodwill associated with the brand, Bojangles can terminate the agreement immediately.
Additionally, Bojangles can immediately terminate the agreement if the franchisee or any shareholder or member of the franchisee attempts to transfer any interest in the agreement or rights to operate the restaurant to a third party without Bojangles's prior written consent, which violates the terms outlined in Paragraph XIV of the agreement. These stipulations are designed to protect Bojangles's brand integrity and ensure franchisees adhere to the agreed-upon terms and standards, and are fairly typical within the franchise industry.