What constitutes a material default under the lease for a Bojangles restaurant premises?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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;
(10) If Franchisee, after curing a default pursuant to Paragraph XV.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 XV.C. hereof for failure to comply with any of the requirements imposed by this Agreement, whether or not cured after notice.
C.
Except as otherwise provided in Paragraphs XV.A. and XV.B. of this Agreement, Franchisee shall have ten (10) days for a monetary default and thirty (30) days for any other default after its receipt from Franchisor of a written notice of default within which to remedy any default hereunder and to provide evidence thereof to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, several actions can trigger a default under the Franchise Agreement, which can impact the restaurant lease. These include ceasing operations, abandoning the restaurant, attempting to do either, or entering into an agreement to sell the real property where the restaurant is located without Bojangles's prior written consent. If any of these events occur, Bojangles may request a statement of intentions and assurances from the franchisee within 24 hours, along with a performance bond within five business days.
Another cause for default is the termination of any other franchise or development agreement with Bojangles or its affiliates due to the franchisee's default. Additionally, a franchisee can be in default if they repeat a previously cured default within 180 days or repeatedly fail to comply with the requirements of the Franchise Agreement, regardless of whether the defaults are cured after notice.
For monetary defaults, the franchisee has ten days to remedy the situation after receiving written notice from Bojangles. For any other type of default, the franchisee has 30 days to remedy the issue and provide evidence of the correction to Bojangles. It is important for a prospective franchisee to understand these conditions, as failure to comply can lead to termination of the Franchise Agreement and potential loss of the restaurant.