What are some of the non-curable defaults that could lead to termination of a Bojangles franchise agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| f. Termination by | FA: Section XIV. | |
| franchisor with cause | IFA: Section XV. | |
| RFA: Section XIV. | ||
| EFA: Sections XV.C. | ||
| and XVI. | ||
| FA: Section XIV.C. | ||
| IFA: Section XV.C. | ||
| RFA: Section XIV.C. | ||
| EFA: Section XVI.C. | ||
| FA: Section XIV.A. | Non-curable defaults include: bankruptcy, insolvency, | |
| and B. | appointment a receiver; creditors proceedings; failure to | |
| IFA: Section XV.A. | timely obtain site approval, construct, and open the | |
| and B. | Restaurant; conviction of certain crimes; unauthorized | |
| RFA: Section XIV.A. | transfer; disclosure of confidential information; | |
| and B. | knowingly maintaining false books or records or | |
| submitting any false reports; unauthorized use of | ||
| EFA: Sections XV.C., | ||
| Proprietary Marks; premature termination of rights in | ||
| the Restaurant location; material default under any lease | ||
| or mortgage on the Restaurant property; cease operating | ||
| or abandon Restaurant; unauthorized agreement to sell | ||
| the Restaurant location; default by you or your affiliates | ||
| and resulting termination of any other agreement with | ||
| us or our affiliates; committing same previously cured | ||
| default within 180 days of previous default; repeated |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 55–63)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, there are several non-curable defaults that could lead to the termination of a franchise agreement. These include critical financial and legal issues, such as bankruptcy, insolvency, or the appointment of a receiver. Furthermore, any proceedings involving creditors can trigger immediate termination.
Operational failures also constitute non-curable defaults. For instance, failing to secure site approval in a timely manner, neglecting construction, or not opening the restaurant as agreed can result in termination. Criminal convictions, unauthorized transfers of the franchise, and the disclosure of confidential information are also grounds for immediate termination. Maintaining false records or submitting false reports are viewed as severe breaches of the agreement.
Further, any unauthorized use of Bojangles's proprietary marks, premature termination of rights to the restaurant location, or a material default under any lease or mortgage on the restaurant property are non-curable defaults. Ceasing operations, abandoning the restaurant, or entering into an unauthorized agreement to sell the restaurant location can also lead to termination. Finally, if a franchisee or their affiliates default and another agreement with Bojangles or its affiliates is terminated as a result, or if the franchisee repeats a previously cured default within 180 days, the franchise agreement can be terminated immediately.