What is the length of the initial franchise term for a Bojangles restaurant, assuming the location is leased?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
is franchise is non-exclusive and is granted subject to the terms of Paragraph VII.C.(6) and VII.F.(6) hereof.
II. TERM AND RENEWAL
- A. 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.
- B. Franchisee may, at its option, renew this Agreement for two (2) additional consecutive terms of ten (10) years each, provided that Franchisee is in substantial compliance with the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the initial franchise term is dependent on whether the restaurant location is leased. For a standard Bojangles restaurant, the initial term is 20 years from the date the restaurant opens. However, if the franchisee leases the approved location, the franchise agreement expires either 20 years from the opening date or upon the expiration or termination of the lease's initial term, whichever comes first. This means the lease agreement directly dictates the franchise term length in such cases.
For a Bojangles restaurant located within an existing structure, the initial term is 10 years from the opening date. But, similar to a standard restaurant, if the location is leased, the agreement expires at the earlier of 10 years from the opening date or the expiration/termination of the lease.
This condition is significant for prospective franchisees as it introduces an element of risk tied to the lease agreement. If the lease term is shorter than the standard franchise term (20 years for a standard restaurant, 10 years for a restaurant in an existing structure), the franchise will end when the lease expires, regardless of the standard term. This could impact the franchisee's long-term investment and business planning. It is important for franchisees to negotiate favorable lease terms that align with their franchise agreement to maximize their operational period and potential return on investment.