If a Bojangles franchisee defaults on another agreement with Bojangles or its affiliates, what happens to the franchise agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) If any other Franchise Agreement or Development Agreement for Bojangles restaurants or any other agreements with Franchisor or its affiliates entered into by Franchisee or its affiliates (or any beneficial owner(s) of Franchisee or its affiliates) is terminated based upon Franchisee's or its affiliates' (or any beneficial owner(s) of Franchisee's or its affiliates') default thereunder;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee or their affiliates defaults on any other agreement with Bojangles or its affiliates, the franchise agreement can be terminated. This includes any Franchise Agreement, Development Agreement, or other agreements. The termination is based on the franchisee's, its affiliates', or any beneficial owner's default under those agreements.
This provision is significant for prospective franchisees because it highlights the interconnectedness of all agreements with Bojangles. A default in one area can have serious repercussions for the entire franchise operation. It is crucial to maintain compliance across all agreements to avoid jeopardizing the franchise.
For example, if a franchisee has multiple Bojangles locations under separate franchise agreements and defaults on one, all franchise agreements could be at risk of termination. This clause underscores the importance of careful financial management and operational adherence across all aspects of the Bojangles business relationship.