If Bojangles terminates a franchisee's participation in the DIP program, what are the immediate financial obligations?

According to Bojangles's 2025 Franchise Disclosure Document, if Bojangles terminates a franchisee's participation in the Development Incentive Program for Minorities, Women and Veterans (DIP Program), the franchisee faces specific immediate financial obligations. The franchisee must immediately pay Bojangles the difference in any reduced franchise fees they received under the DIP Program. This implies that the franchisee initially benefited from a lower franchise fee as part of the incentive.

In addition to repaying the reduced franchise fee, the franchisee must also immediately begin paying the standard royalty rate as specified in their Franchise Agreement. This means the franchisee will no longer benefit from any royalty fee reductions they were receiving as part of the DIP Program and will be subject to the standard, higher royalty rate.

These financial obligations are triggered if Bojangles terminates the franchisee's participation in the DIP Program for reasons such as Eligible Persons no longer holding at least 51% of the ownership interests, or failure to comply with the Development Agreement, Franchise Agreement(s), or any other agreement with Bojangles or its affiliates. Therefore, it is crucial for franchisees participating in the DIP program to maintain eligibility and compliance to avoid these immediate financial repercussions.