What items in the Disclosure Document relate to site development and other pre-opening requirements for a Bojangles franchise, as referenced in the Development Agreement and Franchise Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Development Agreement (DA) Franchise Agreement (FA) Individual Franchise Agreement (IFA) Express Franchise Agreement (EFA) Renewal Franchise Agreement (RFA) | Item in Disclosure Document | |
|---|---|---|---|
| c. | Site development and other pre-opening requirements | DA: Sections I.A. and B., IV and VI FA: Section VI. A.-F., I., J.(6), K., L. and M. IFA: Section VII.A.-E., H., I.(6), J., K. and L. EFA: Sections VI, VIII.A.-E., H., I.(6), J., K. and M. RFA: Not applicable | Items 7, 8 and 11 |
You must obtain our written approval of the terms of any lease or mortgage for any site on which a Restaurant is to be developed. The lease or mortgage must permit assignment to us in the event of default by you under the lease, mortgage, deed of trust, or any agreement between you and us. The documents must provide, in form and substance satisfactory to us, provisions for quiet enjoyment, subordination, and mutual attornment. Leases and mortgages must be bona fide and provide financial terms consistent with those prevalent in the area. Leases must also provide for a term not less than the term of the Franchise Agreement for the Restaurant to be developed on the site. You must use your best efforts to obtain an option to renew the Lease on stated financial terms which, if exercised, will, when added to the initial term, be for a period of not less than an additional twenty years. As part of the Franchise Agreement, you and your landlord must execute the Addendum to the Lease Agreement, which is Exhibit D to the Franchise Agreement, that provides, in pertinent part, the requirement that the landlord provide us notice of any default and permits us to assume the lease, at our option, upon your default of your lease obligations.
You must purchase and use the computer hardware and software system described in Item 11. You may also be required to acquire equipment for offering for sale and accepting gift cards and credit cards and to work with our approved credit card and gift card program vendors. You will be required to receive communication from us on a variety of subjects on an on-going basis by email. You will be required to use an email address that we provide as part of the Bojangles System as a means of receiving information from us.
You must procure and maintain insurance for the Restaurant as follows:
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- Comprehensive general liability insurance, including products liability and broad form contractual liability insurance in an amount of not less than $5,000,000 per occurrence.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–37)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Items 7, 8, and 11 relate to site development and other pre-opening requirements, as referenced in the Development Agreement and Franchise Agreement. Specifically, Section I.A. and B., IV and VI of the Development Agreement and Section VI. A.-F., I., J.(6), K., L. and M. of the Franchise Agreement, and Section VII.A.-E., H., I.(6), J., K. and L. of the Individual Franchise Agreement, and Sections VI, VIII.A.-E., H., I.(6), J., K. and M. of the Express Franchise Agreement all pertain to site development and other pre-opening requirements.
Item 8 also discusses lease requirements, stating that Bojangles requires written approval of the lease terms for any site where a restaurant will be developed. The lease must allow assignment to Bojangles in case the franchisee defaults. The lease documents must include provisions for quiet enjoyment, subordination, and mutual attornment, and the financial terms must be consistent with the area. The lease term must be at least as long as the Franchise Agreement. Franchisees must try to get an option to renew the lease for at least an additional twenty years. The franchisee and landlord must execute an addendum to the lease agreement that requires the landlord to notify Bojangles of any default and allows Bojangles to assume the lease if the franchisee defaults.
Furthermore, Item 8 outlines the franchisee's obligation to purchase and use the computer hardware and software system specified in Item 11. Franchisees may also need to buy equipment for offering and accepting gift cards and credit cards and work with Bojangles's approved vendors. Franchisees must receive ongoing communications from Bojangles via an email address provided by Bojangles as part of the Bojangles system.
Item 8 also specifies the insurance requirements for the restaurant. This includes worker's compensation insurance, comprehensive general liability insurance of at least $5,000,000 per occurrence, and property insurance covering the building for 100% replacement cost. All insurance policies must name Bojangles Opco, LLC, Bojangles' Restaurants, Inc., and their affiliates as additional insureds or loss payees and provide 30 days' written notice before cancellation. Franchisees must provide copies of all policies and evidence of premium payments to Bojangles.