When does Bojangles Franchisor have to exercise its right to purchase the Franchised Business after termination?

According to Bojangles's 2025 Franchise Disclosure Document, Bojangles Franchisor must exercise its right to purchase the Franchised Business within a specific timeframe after termination. The deadline is determined by whichever date is latest among the following: 60 days after the termination date, the date Bojangles takes possession of the restaurant, or 10 days after any litigation contesting the termination's validity is finally resolved.

This means that if a franchisee disputes the termination in court, Bojangles can wait until after the legal proceedings conclude before deciding whether to purchase the business. This protects Bojangles from having to make a purchase decision while the validity of the termination is still uncertain.

Furthermore, if Bojangles has already taken possession of the restaurant, it must decide whether to exercise its right to purchase the restaurant or vacate the premises by the end of the period described above. This clause ensures that the franchisee is not left in limbo indefinitely after termination. It also gives Bojangles a defined period to evaluate the business's performance under its management before committing to a purchase.

For a prospective franchisee, this clause highlights the importance of understanding the conditions under which the franchise agreement can be terminated and the potential financial implications. If termination is contested, the franchisee should be prepared for a potentially lengthy period of uncertainty regarding the future of their business.