If a condemnation proceeding affects the Bojangles restaurant premises, what conditions must the franchisee meet to avoid breaching the franchise agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) If Franchisee shall cause, suffer, or permit (voluntarily or involuntarily) its right to or possession of the premises on which the Restaurant is located to be terminated prematurely for any cause whatsoever; or if Franchisee shall be in material default under the lease for the premises on which the Restaurant is located, or shall be in material default under any mortgage with respect to the property on which the Restaurant is located, provided, however, that Franchisee shall not be in breach of this provision if a condemnation proceeding affecting the premises upon which the Restaurant is situated occurs which makes it impossible or infeasible for Franchisee to con
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee will not be in breach of their franchise agreement if a condemnation proceeding affects the restaurant premises, making it impossible or infeasible to continue operations. This means that if the government or another entity with eminent domain authority takes the property, rendering it unusable for the Bojangles restaurant, the franchisee will not be penalized under the franchise agreement.
This provision protects the franchisee from being held responsible for circumstances beyond their control. Condemnation can occur for various reasons, such as road construction, public utilities, or other public projects. Without this clause, a franchisee could potentially be in default of their agreement due to the loss of the restaurant location, even though they did nothing wrong.
It is important for prospective Bojangles franchisees to understand this clause, as it provides a degree of security in the event of unforeseen circumstances. While condemnation is not a common occurrence, it can have significant financial implications for a business owner. This clause ensures that the franchisee will not face additional penalties from Bojangles if such an event occurs. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and any applicable lease agreements.