What happens to the Royalty Fee Reduction if the Bojangles Development Incentive Program Addendum is terminated?

According to Bojangles's 2025 Franchise Disclosure Document, if the Development Incentive Program Addendum is terminated, the royalty fee reduction for any qualifying restaurant will immediately end. The developer must then start paying Bojangles the standard royalty fee as specified in the Franchise Agreement for that restaurant.

This means that the franchisee will no longer benefit from the reduced royalty rate offered as an incentive under the program. The termination of the addendum requires an immediate return to the standard royalty fee, impacting the franchisee's ongoing costs and profitability.

The addendum can be terminated without notice if certain conditions occur, such as a transfer of ownership interests, failure to open a restaurant by the date in the Development Schedule, or failure to cure a default under the Development Agreement or Franchise Agreement. Franchisees should carefully review the conditions that could lead to termination to avoid losing the royalty fee reduction and other incentives.