What happens if a Bojangles franchisee ceases to operate or abandons the restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
open, and within one (1) year of the final condemnation determination opens, a substitute Restaurant on a new site approved by Franchisor;
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the 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 Franchisee or of the 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 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 Franchisee shall provide within five (5) business days thereafter, a performance bond from Franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion.
- (9) If any other Franchise Agreement or Development Agreement for Bojangles restaurants or any other agreements with Franchisor or its affiliates entered into by Franchisee or its affiliates (or any beneficial owner(s) of Franchisee or its affiliates) is terminated based upon Franchisee's or its affiliates' (or any beneficial owner(s) of Franchisee's or its affiliates') default thereunder;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee ceases to operate or abandons their restaurant, or attempts to do so, Bojangles may request a statement of intentions and assurances from the franchisee. This statement must be delivered in writing within 24 hours of the request.
In addition to the statement, Bojangles has the right to request a performance bond from the franchisee. The amount of the bond and the issuing entity will be determined at Bojangles's discretion. This bond serves as a financial guarantee that the franchisee will fulfill their obligations under the franchise agreement.
Furthermore, to maintain continuous operation and promote the best interests of the Bojangles system, Bojangles has the right to immediately enter and take possession of the restaurant upon termination of the franchise agreement. This allows Bojangles to continue operating the restaurant, ensuring a seamless transition and maintaining service to customers. However, the FDD specifies that taking possession of the restaurant does not give Bojangles control over the franchisee's employees.