What is the exception to default if a Bojangles restaurant is affected by condemnation?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) If Franchisee shall cause, suffer, or permit (voluntarily or involuntarily) its right to or possession of the premises on which the Restaurant is located to be terminated prematurely for any cause whatsoever; or if Franchisee shall be in material default under the lease for the premises on which the Restaurant is located, or shall be in material default under any mortgage with respect to the property on which the Restaurant is located, provided, however, that Franchisee shall not be in breach of this provision if a condemnation proceeding affecting the premises upon which the Restaurant is situated occurs which makes it impossible or infeasible for Franchisee to continue to operate the Restaurant at its present location, and within thirty (30) days after the final condemnation determination Franchisee provides Franchisor with notice of its
intention to open, and within one (1) year of the final condemnation determination opens, a substitute Restaurant on a new site approved by Franchisor;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, a franchisee will not be in breach of contract if a condemnation proceeding affects the restaurant's premises, making it infeasible to continue operations, provided certain conditions are met. Specifically, the franchisee must notify Bojangles of their intention to open a substitute restaurant within 30 days of the final condemnation determination.
Furthermore, the franchisee must then open a substitute Bojangles restaurant on a new site approved by Bojangles within one year of the final condemnation determination. This exception protects the franchisee from being in default under the lease or mortgage if the property is condemned, but it also places specific obligations on the franchisee to mitigate the impact of the condemnation by re-establishing the restaurant.
This clause ensures that Bojangles maintains its presence in the market despite unforeseen circumstances like condemnation. For a prospective franchisee, this means understanding the responsibilities involved in relocating and re-establishing the business promptly after a condemnation event to avoid being in default of the franchise agreement. The franchisee bears the responsibility of finding a new, suitable location that meets Bojangles' approval and ensuring the new restaurant is operational within the specified timeframe.