If a Bojangles franchisee or its affiliates have another agreement with Bojangles or its affiliates terminated due to default, what impact does this have on the franchise agreement?

According to Bojangles' 2025 Franchise Disclosure Document, if a franchisee or its affiliates (or any beneficial owner(s) of the franchisee or its affiliates) have any other Franchise Agreement or Development Agreement for Bojangles restaurants, or any other agreements with Bojangles or its affiliates terminated due to default, the existing franchise agreement may be terminated. This termination is based upon the franchisee's or its affiliates' (or any beneficial owner(s) of the franchisee's or its affiliates') default under those other agreements.

This clause is significant for prospective franchisees because it highlights the interconnectedness of multiple agreements with Bojangles. If a franchisee or its affiliates have multiple Bojangles locations or other business dealings with the company, a default in one area can trigger a default and potential termination of all agreements. This could lead to a loss of all Bojangles franchises owned by the franchisee and its affiliates.

It is important for potential franchisees to carefully review all agreements with Bojangles and its affiliates to fully understand the implications of a default. Franchisees should also ensure that their affiliates are aware of these provisions, as their actions could also impact the franchisee's standing with Bojangles. This clause is not uncommon in franchising, as franchisors often want to protect their brand and system-wide reputation by ensuring all franchisees and their related entities adhere to the agreements.