factual

What is an example of a failure that would cause a Bojangles franchisee to be in default under Paragraph XIV.C.?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee shall be in default hereunder for any failure to comply with any of the requirements imposed by this Agreement, including any matter enumerated in this Paragraph XIV.C., as it may from time to time reasonably be supplemented by the Manual, or to carry out the terms of this Agreement in good faith.

Such defaults shall include, for example, but without limitation, the occurrence of any of the following events:

  • (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)

According to Bojangles's 2025 Franchise Disclosure Document, a franchisee can be in default under Paragraph XIV.C. for failing to comply with the requirements of the Franchise Agreement. This includes any matter supplemented by the Manual or failure to carry out the terms of the agreement in good faith.

Examples of defaults include, but are not limited to, failing to promptly pay monies owed to Bojangles or its affiliates, neglecting to submit required financial or other information, failing to pay suppliers or landlords, not maintaining the restaurant in a clean manner according to Bojangles's standards, failing to obtain required prior written approval or consent from Bojangles, or denying Bojangles or its designee the right to inspect the restaurant at reasonable times.

If a franchisee is in default, Bojangles will provide a written notice, and the franchisee will typically have ten days to remedy a monetary default or thirty days to remedy any other default. If the default is not cured within the specified time, Bojangles can terminate the Franchise Agreement. Furthermore, a franchisee can be in default if another Bojangles Franchise Agreement or Development Agreement is terminated due to the franchisee's default. Also, if a franchisee commits the same or a substantially similar default again within 180 days after curing a prior default, or repeatedly defaults under Paragraph XIV.C., it can result in termination.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.