In the event of termination for any default by a Bojangles franchisee, what does the franchisee's obligation to pay sums owing to Bojangles include?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) If Franchisee fails, refuses, or neglects promptly to pay any monies owing to Franchisor or its parents, subsidiaries or affiliates when due, or to submit the financial or other information required by Franchisor under this Agreement;
(2) If Franchisee fails to pay or fails repeatedly to make prompt payment of undisputed amounts due to its suppliers, landlord, equipment lessors, or other third parties;
(3) If Franchisee fails to maintain the Restaurant in a good, clean and wholesome manner, or fails to maintain or observe any of the other standards or procedures prescribed by Franchisor in this Agreement, the Manual, or otherwise in writing;
(4) If Franchisee fails, refuses, or neglects to obtain Franchisor's prior written approval or consent as required by this Agreement;
(5) If Franchisee denies Franchisor or its designee the right to inspect the Restaurant at reasonable times;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
The 2025 Bojangles Franchise Disclosure Document outlines specific instances of franchisee default that trigger the obligation to pay monies owed to Bojangles. These defaults include failing to promptly pay any monies owed to Bojangles, its parents, subsidiaries, or affiliates when due, or neglecting to submit required financial or other information. Additionally, default occurs if a franchisee fails to pay or repeatedly fails to make prompt payments of undisputed amounts to suppliers, landlords, equipment lessors, or other third parties.
Further defaults leading to the obligation to pay outstanding sums include failing to maintain the restaurant in a good, clean, and wholesome manner, or not adhering to the standards and procedures prescribed by Bojangles in the Franchise Agreement, the Manual, or other written communications. Failure to obtain Bojangles' prior written approval or consent when required by the agreement also constitutes a default. Moreover, denying Bojangles or its designee the right to inspect the restaurant at reasonable times is considered a default.
These conditions highlight the importance of maintaining strong financial management, adhering to brand standards, and maintaining open communication with Bojangles for prospective franchisees. Failure to meet these obligations can lead to termination of the franchise agreement and the requirement to settle all outstanding debts.