factual

How is the initial term of the Bojangles Franchise Agreement determined if the franchisee's approved location is leased?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

Except as otherwise provided herein, the initial term of this Agreement shall expire twenty (20) years from the date the Restaurant first opens for business; provided, however, that if Franchisee's approved location is leased, this Agreement shall expire at the earlier of twenty (20) years from the date the Restaurant first opens for business or upon expiration or termination of the initial term of the lease.

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, the initial term of the franchise agreement is generally set at a fixed duration. Specifically, for a standard Bojangles restaurant, the initial term is twenty years from the date the restaurant first opens for business. However, this term is subject to a significant condition if the franchisee's approved location is leased rather than owned.

In the event that the Bojangles franchisee leases the location, the franchise agreement's term will expire sooner if the lease expires or terminates before the full twenty-year period has elapsed. This means the franchise agreement's term is tied to the lease term, creating a dependency on the lease agreement. The Bojangles franchise agreement will end either after twenty years from the opening date or at the conclusion of the lease's initial term, whichever comes first.

This condition is important for prospective Bojangles franchisees to consider, as the length of the lease they secure will directly impact the duration of their franchise agreement. Franchisees need to negotiate lease terms carefully to ensure they align with their long-term business plans and franchise expectations. It is also important to note that the standard term length differs based on the type of franchise agreement, as the term length described above applies to a standard Bojangles restaurant, while a restaurant located within a portion of an existing structure has an initial term of ten years.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.