What constitutes a 'material default' under the lease for the premises that could lead to termination of a Bojangles franchise?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of mutual covenants set forth herein, the execution and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Franchisee hereby agree as follows:
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- Landlord shall deliver to Franchisor a copy of any notice of default or termination of the Lease at the same time such notice is delivered to Franchisee.
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- Franchisee hereby assigns to Franchisor, with Landlord's irrevocable and unconditional consent, all of Franchisee's rights, title and interests to and under the Lease upon any termination, expiration, or non-renewal of the Franchise Agreement, but no such assignment shall be effective unless: (a) the Franchise Agreement is terminated, not renewed, or expires without renewal or Franchisor has exercised its option to purchase the Restaurant under the Franchise Agreement, as applicable; and (b) Franchisor notifies Franchisee and Landlord in writing that Franchisor assumes Franchisee's obligations under the Lease.
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- Franchisor shall have the right, but not the obligation, upon giving written notice of its election to Franchisee and Landlord, to cure any breach of the Lease and, if so stated in the notice, to also succeed to Franchisee's rights, title and interests thereunder.
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- Terms of the Lease that relate to or impact this Addendum may not be modified without Franchisor's prior written consent. The Lease may not be assigned by Franchisee without Franchisor's prior written consent.
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- Franchisee and Landlord acknowledge and agree that Franchisor shall have no liability or obligation whatsoever under the Lease unless and until Franchisor assumes the Lease in writing pursuant to Section 2 or Section 3, above.
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- If Franchisor assumes the Lease, as provided above, Franchisor may, without Landlord's prior consent, further assign the Lease to (a) an affiliate of Franchisor or as part of Franchisor's financing or refinancing of its assets; or (b) to an approved franchisee of Franchisor to operate the Bojangles restaurant at the Premises provided that the following
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
Based on the 2025 Bojangles Franchise Disclosure Document, the lease agreement between the landlord and the franchisee contains clauses that define events of default. While the FDD excerpts discuss the franchisor's rights and involvement in the lease, including receiving default notices and having the option to cure breaches, it does not explicitly define what actions or omissions by the franchisee would constitute a 'material default' under the lease.
However, the FDD does state that the landlord must deliver to Bojangles a copy of any notice of default or termination of the lease at the same time such notice is delivered to the franchisee. This clause ensures that Bojangles is informed of any potential issues that could jeopardize the franchisee's lease and, by extension, the operation of the Bojangles restaurant. Bojangles also has the right, but not the obligation, to cure any breach of the lease, further protecting their interest in maintaining the restaurant's location.
Prospective Bojangles franchisees should carefully review the lease agreement and any related addenda to fully understand what constitutes a default. It is essential to clarify these points with the franchisor and landlord before signing the agreement to avoid potential disputes or termination of the lease. Understanding these conditions is crucial for the franchisee's ability to maintain their business operations and uphold their obligations under both the franchise agreement and the lease.