Can the Bojangles Franchisor request a statement of intentions from the Developer in lieu of immediate termination?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) If Developer or any franchisee under a Franchise Agreement entered into pursuant to this Agreement ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, any Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Developer, of the franchisee, or of any Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Developer and the franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request.
In addition, Franchisor may request, and Developer and the franchisee shall provide within five (5) business days thereafter, a performance bond from Developer and the franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion;
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, under specific circumstances, Bojangles may request a statement of intentions from the Developer and franchisee instead of immediate termination of the agreement. This option is available if the Developer or any franchisee ceases operation, abandons a restaurant, or attempts to sell the restaurant's property or assets without prior written consent from Bojangles.
In such instances, Bojangles has the right to request a written statement of intentions and assurances from the Developer and franchisee, confirming that no breach of the agreement is intended. This statement must be provided within twenty-four (24) hours of Bojangles's request.
Additionally, Bojangles may also require the Developer and franchisee to provide a performance bond within five (5) business days. The amount of the bond and the issuing entity will be determined at Bojangles's discretion. This provides Bojangles with an alternative to immediate termination, allowing them to assess the situation and potentially ensure continued compliance with the agreement.