What constitutes a material default under the lease for a Bojangles restaurant location?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
open, and within one (1) year of the final condemnation determination opens, a substitute Restaurant on a new site approved by Franchisor;
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Franchisee or of the Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request. In addition Franchisor may request, and Franchisee shall provide within five (5) business days thereafter, a performance bond from Franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion.
- (9) If any other Franchise Agreement or Development Agreement for Bojangles restaurants or any other agreements with Franchisor or its affiliates entered into by Franchisee or its affiliates (or any beneficial owner(s) of Franchisee or its affiliates) is terminated based upon Franchisee's or its affiliates' (or any beneficial owner(s) of Franchisee's or its affiliates') default thereunder;
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- (10) If Franchisee, after curing a default pursuant to Paragraph XIV.C. hereof, commits the same, or a substantially similar, default again within one hundred eighty (180) days after the prior default occurred, whether or not cured after notice; or
- (11) If Franchisee repeatedly is in default under Paragraph XIV.C. hereof for failure to comply with any of the requirements imposed by this Agreement, whether or not cured after notice.
- C.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, a Bojangles franchisee can be in default of their Franchise Agreement for several reasons. These include ceasing to operate or abandoning the restaurant, or attempting to do so. Also, entering into an agreement to sell, selling, or attempting to sell the real property upon which the restaurant is located, or substantially all interest in the restaurant or real property lease, or substantially all of the assets of the franchisee or of the restaurant, without Bojangles' prior written consent, can trigger a default. However, Bojangles may request a statement of intentions and assurances that no breach is contemplated, to be delivered within 24 hours, and a performance bond within five business days, in lieu of immediate termination.
Another cause for default is if any other Franchise Agreement or Development Agreement for Bojangles restaurants, or any other agreements with Bojangles or its affiliates entered into by the franchisee or its affiliates (or any beneficial owner(s) of franchisee or its affiliates) is terminated based upon the franchisee's or its affiliates' (or any beneficial owner(s) of franchisee's or its affiliates') default.
Furthermore, a franchisee can be in default if, after curing a default, they commit the same or a substantially similar default again within 180 days after the prior default occurred, whether or not cured after notice. Finally, repeatedly being in default for failure to comply with any of the requirements imposed by the Agreement, whether or not cured after notice, also constitutes a default.