What constitutes a material, non-curable breach of the Bojangles Franchise Agreement related to construction deadlines?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
with all pre-opening requirements set forth in this Agreement and in the Manual or as otherwise required by Franchisor in writing.
- (6) Strict compliance with the Site Approval Deadline, Construction Commencement Deadline and Opening Deadline is essential to this Agreement. Any failure by Franchisee in fulfilling its obligations to meet the Site Approval Deadline, Construction Commencement Deadline or Opening Deadline shall constitute a material, non-curable breach of this Agreement permitting Franchisor immediately to terminate this Agreement by giving written notice of termination to Franchisee. Time is of the essence.
- (7) Franchisee may submit a written request to Franchisor for an extension of up to six (6) months of the Site Approval Deadline, Construction Commencement Deadline and/or Opening Deadline for the Restaurant. Franchisee must pay Franchisor a lump-sum extension fee in the amount of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) when Franchisee submits an extension request to compensate Franchisor for its costs, expenses and lost opportunities related to the proposed extension. Franchisor must receive Franchisee's extension request at least fourteen (14) calendar days before the occurrence of the deadline date. Upon review, Franchisor may grant Franchisee, in Franchisor's sole discretion, an extension of the applicable deadline(s) for a Restaurant. If Franchisor grants an extension on any deadline, Franchisor will determine the length of the extension at its sole option.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, strict adherence to construction deadlines is critical. Specifically, failing to meet the Site Approval Deadline, Construction Commencement Deadline, or Opening Deadline constitutes a material, non-curable breach of the Franchise Agreement. This gives Bojangles the right to immediately terminate the agreement by providing written notice to the franchisee. The FDD emphasizes that time is of the essence in these matters.
The Construction Commencement Deadline is defined as 270 days after Bojangles's written site approval notice. However, if the restaurant is being developed under a Development Agreement, the Construction Commencement Deadline is the earlier of the 270-day mark or the deadline specified in the development schedule. Similarly, the Opening Deadline is 180 days after construction begins, but if a Development Agreement is in place, the opening deadline is the earlier of the 180-day mark or the date in the development schedule.
Bojangles does provide an option for franchisees to request an extension of up to six months for the Site Approval Deadline, Construction Commencement Deadline, or Opening Deadline. To request an extension, the franchisee must submit a written request to Bojangles at least 14 calendar days before the deadline and pay a $2,500 extension fee. However, Bojangles has sole discretion to grant or deny the extension and determine its length. If the extension is denied, the fee will be refunded. It's important to note that extensions only modify the specific deadline they address and do not alter other deadlines.
This clause highlights the importance of thorough planning and realistic scheduling when opening a Bojangles franchise. Franchisees should carefully consider potential delays and factor in sufficient time for site approval, construction, and opening to avoid the risk of termination. The option to request an extension provides some flexibility, but approval is not guaranteed and comes at a cost. Prospective franchisees should discuss the typical timeline for each stage with existing franchisees and the franchisor to fully understand the expectations and potential challenges.