If the Bojangles Development Incentive Program Addendum is terminated, what immediate financial obligation does the franchisee have if the restaurant was one of the first two qualifying restaurants?

According to Bojangles's 2025 Franchise Disclosure Document, if the Equipment Reimbursement Incentive Program Addendum is terminated, a developer must immediately pay Bojangles an amount equal to the Franchise Fee Reduction they received for the Qualifying Restaurant.

This means that if a franchisee's addendum is terminated, they will no longer be entitled to any further development incentives under the program, including the Franchise Fee Reduction and the Royalty Fee Reduction for future restaurants that the developer opens. This could significantly impact the franchisee's financial obligations to Bojangles, especially if they were relying on these incentives to offset initial costs or improve profitability.

Termination of the addendum can occur without notice or opportunity to cure under specific conditions, such as transferring ownership interests, failing to open a restaurant by the scheduled date, or defaulting on any agreement with Bojangles and its affiliates. Therefore, it is crucial for franchisees to remain compliant with all agreements and development schedules to avoid termination and the subsequent financial repercussions.