What must a Bojangles developer do regarding lease or mortgage terms for each site?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer must obtain the written approval of Franchisor with respect to the terms of any lease or mortgage with respect to each site to be developed as a Restaurant under this Agreement.
Within thirty (30) days after Franchisor's approval of a site, Developer shall notify Franchisor of the closing date if the site is to be obtained by purchase; and provide Franchisor with a copy of the proposed mortgage or deed of trust if a mortgage loan is contemplated; or, if the site is to be obtained by lease, provide Franchisor with a copy of the proposed lease.
Within twenty (20) days thereafter, Franchisor shall send notice of approval or notice of rejection with comments.
Developer shall, as promptly as possible after receipt of approval, complete acquisition or leasing of the site; and in any event shall complete acquisition or leasing of the approved site within ninety (90) days after receiving Franchisor's written approval of the site.
- C.
Any lease or mortgage for a Restaurant site must permit assignment of the lease, mortgage, or deed of trust to Franchisor or its designees in the event of default by Developer of the lease, mortgage, deed of trust, this Agreement, or any other agreement with Franchisor; and must provide, in form and substance satisfactory to Franchisor, for quiet enjoyment, subordination and mutual attornment.
Leases and mortgages must be bona fide, and provide financial terms consistent with those prevalent in the area.
Leases shall provide for a term not less than the term of the respective Franchise Agreement.
Developer shall use its best efforts to obtain therein an option to renew on stated financial terms, which if exercised will, with the initial term, be for a period of not less than an additional twenty (20) years.
Unless waived in writing by Franchisor, any lease for a Restaurant site shall contain provisions that satisfy the requirements set forth in the Addendum to Lease Agreement attached to this Agreement as Exhibit C during the entire term of the lease, including any renewal terms. [For Bojangles Express Restaurants, delete the last two sentences of this Paragraph IV.C.]
- D.
Upon receipt of a copy of an executed lease or a copy of an executed unconditional contract to purchase the site (or a deed if the site is owned by Developer), Franchisor will provide Developer with preliminary plans and specifications for the construction of a Bojangles standard, free-standing restaurant building for use by Developer and its architect, that must be approved by Franchisor, in preparation of final plans and specifications for the Restaurant to be constructed on the site.
Developer shall bear the cost of any modifications to the preliminary plans and specifications provided to Developer by Franchisor.
Final plans and specifications must be
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a developer must obtain written approval from Bojangles for the terms of any lease or mortgage for each restaurant site. Within 30 days of site approval, the developer must inform Bojangles of the closing date if purchasing the site and provide a copy of the proposed mortgage or deed of trust if a mortgage loan is planned. If leasing, the developer must provide a copy of the proposed lease. Bojangles then has 20 days to send an approval or rejection notice with comments. After receiving approval, the developer must complete the acquisition or leasing of the site within 90 days.
The lease or mortgage must allow assignment to Bojangles or its designees if the developer defaults on the lease, mortgage, the Development Agreement, or any other agreement with Bojangles. The lease must also provide for quiet enjoyment, subordination, and mutual attornment in a form and substance satisfactory to Bojangles. Lease and mortgage financial terms must align with those prevalent in the area. The lease term should be no less than the term of the Franchise Agreement, and the developer should try to obtain an option to renew for at least an additional 20 years on stated financial terms.
Unless Bojangles waives it in writing, any lease for a restaurant site must meet the requirements in the Addendum to Lease Agreement (Exhibit C) for the entire lease term, including renewals. However, for Bojangles Express Restaurants, the last two sentences of Paragraph IV.C are deleted. After the developer provides a copy of the executed lease or unconditional purchase contract (or deed if the developer owns the site), Bojangles will provide preliminary plans and specifications for a standard, free-standing restaurant building. The developer is responsible for the cost of any modifications to these preliminary plans. Final plans and specifications must be approved by Bojangles before construction begins.
These requirements ensure that Bojangles maintains control over site selection and lease terms, protecting its brand and operational standards. The assignment clause in the lease protects Bojangles in case of developer default, allowing them to take over the site. The lease term requirements and renewal options ensure long-term stability for the restaurant location. Franchisees should carefully review Exhibit C, the Addendum to Lease Agreement, to understand all specific requirements for the lease.