What happens if a Bojangles franchisee fails to meet the Construction Commencement Deadline?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
not less than the term of this Agreement. Franchisee shall use its best efforts to obtain in any lease an option to renew on stated financial terms, which if exercised will, with the initial term, be for a period of not less than twenty (20) years. Unless waived in writing by Franchisor, any lease for the Restaurant site shall contain provisions that satisfy the requirements set forth in the Addendum to Lease Agreement attached to this Agreement as Exhibit D during the entire term of the lease, including any renewal terms.
- D. Upon receipt of a copy of an executed lease or a copy of an executed unconditional contract to purchase the site (or a deed if the site is owned by Franchisee), Franchisor will provide Franchisee with preliminary plans and specifications for the construction of a Bojangles standard, free-standing restaurant building for use by Franchisee and its architect, which must be approved by Franchisor, in preparation of final plans and specifications for the Restaurant to be constructed on the site. Franchisee shall bear the cost of any modifications to the preliminary plans and specifications provided to Franchisee by Franchisor. Final plans and specifications must be approved by Franchisor before the start of construction. Franchisee shall obtain, at its cost, the necessary permits required to construct the Restaurant and shall meet all other applicable requirements established by local statute, local ordinance or otherwise. Franchisee shall commence construction of the Restaurant within two hundred seventy (270) days after the date of Franchisor's written site approval notice ("Construction Commencement Deadline"). Franchisee shall construct, furnish, and open the Restaurant within one hundred eighty (180) days after the
commencement of
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, failing to meet the Construction Commencement Deadline constitutes a significant breach of the franchise agreement. The Construction Commencement Deadline is defined as 270 days after the date of Bojangles's written site approval notice. If a franchisee fails to begin construction within this timeframe, Bojangles has the right to immediately terminate the franchise agreement by providing written notice. This emphasizes the importance of adhering to the established deadlines.
However, the FDD also provides an option for franchisees to request an extension. A franchisee can submit a written request to Bojangles for an extension of up to six months for the Construction Commencement Deadline. This request must be accompanied by a lump-sum extension fee of $2,500, which compensates Bojangles for costs, expenses, and lost opportunities related to the proposed extension. The extension request must be received by Bojangles at least 14 calendar days before the original deadline.
Bojangles has the sole discretion to grant or reject the extension request. If the extension is granted, Bojangles will determine the length of the extension. Factors considered by Bojangles include the franchisee's diligence in developing the restaurant. If the extension request is rejected, the $2,500 extension fee will be refunded to the franchisee. It's important to note that extensions only modify the specific deadline they address and do not alter any other deadlines within the agreement. The franchise agreement emphasizes that time is of the essence, so franchisees should make every effort to meet the deadlines or seek an extension well in advance to avoid potential termination of the agreement.