If a Bojangles franchisee ceases to operate or abandons the restaurant, what statement of intentions and assurances may Bojangles request, and within what timeframe must the franchisee deliver it?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Franchisee or of the Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request.
In addition, Franchisor may request, and Franchisee shall provide within five (5) business days thereafter, a performance bond from Franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee ceases to operate or abandons their restaurant, Bojangles may request a statement of intentions and assurances from the franchisee. This statement serves as a formal declaration that the franchisee is not in breach of the Franchise Agreement. The franchisee must deliver this statement in writing within twenty-four (24) hours of Bojangles's request.
In addition to the statement of intentions, Bojangles has the option to request a performance bond from the franchisee. The amount of this bond and the issuing entity are determined at Bojangles's discretion, provided it is deemed reasonable. The franchisee is then required to provide this performance bond within five (5) business days of the request.
This clause protects Bojangles by allowing them to quickly assess the situation and secure assurances from a franchisee who may be considering ceasing operations or transferring ownership without consent. The performance bond provides an additional layer of financial security for Bojangles, ensuring that the franchisee fulfills their obligations or that Bojangles has recourse to cover any potential losses. This is a fairly standard practice in franchising, allowing the franchisor to maintain brand consistency and protect their investment.