What paragraph in the Bojangles Development Agreement outlines the remedies available to the Franchisor upon Developer default?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
on of the ten (10) day or thirty (30) day period, as applicable, or such longer period as applicable law may require. In lieu of termination, Franchisor may, at its discretion, elect any of the remedies set forth in Paragraph VIII.E. hereof. Developer shall be in default hereunder:
- (1) If Developer fails to comply with any of the requirements imposed by this Agreement or fails to carry out the terms of this Agreement in good faith;
- (2) If a final judgment against Developer remains unsatisfied or of record for thirty (30) days or longer (unless supersedeas bond is filed);
- (3) If Developer is dissolved, execution is levied against Developer's business or property, or suit to foreclose any lien or mortgage against any Restaurant or equipment situated therein is instituted against Developer and not dismissed or bonded off within sixty (60) days;
- (4) If the real or personal property of any Restaurant of Developer is sold after levy thereupon by any sheriff, marshal, or constable; or
- (5) If an approved transfer of a controlling interest in Developer is not effected within the prescribed period following the death or mental incapacity of a shareholder or member of Developer, as required by Paragraph IX. D. hereof.
- E. Within sixty (60) days after any default of Developer under Paragraphs VIII.B. or VIII.C. hereof, or within ninety (90) days after a default of Developer which is not cured pursuant to Paragraph VIII.D. hereof, in addition to the right to terminate described in those paragraphs, Franchisor, in its discretion, may elect to do any one or more of the following (provided, however, that upon a default as set forth in Paragraph VIII. C. (l), and provided that no other defaults have occurred and are continuing, Franchisor may exercise only those remedies set forth in subparagraphs (l), (2) and (4) below):
- (1) Reduce the number of Restaurants which Developer may establish pursuant to Paragraph I. of this Agreement;
- (2) Terminate the territorial exclusivity granted Developer in Paragraph I.B. hereof, or reduce the area of territorial exclusivity granted Developer hereunder;
- (3) Terminate all Franchise Agreements, development agreements or any other agreements entered into between Franchisor and Developer or its affiliates (or any beneficial owner(s) of Developer or its affiliates), thereby obligating Developer or its affiliates (or any beneficial owner(s) of Developer or its affiliates) to cease operating Restaurants under the Bojangles System, to deidentify the Restaurants from the Bojangles System, and to comply with all obligations upon termination or expiration set forth in the Franchise Agreements;
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Paragraph VIII.E. of the Development Agreement outlines the remedies available to Bojangles upon a developer's default.
If a developer defaults, Bojangles has several options. They can terminate the territorial exclusivity granted to the developer, reducing the area covered by the agreement. Bojangles can also terminate all franchise agreements, development agreements, or other agreements with the developer or their affiliates, requiring them to stop operating Bojangles restaurants, de-identify the restaurants from the Bojangles system, and comply with all termination obligations in the Franchise Agreements.
Additionally, Bojangles can terminate the Development Agreement, preventing the developer from constructing new restaurants, but allowing them to continue operating existing restaurants if they comply with the franchise agreements. Under specific circumstances, Bojangles can also purchase the assets of all restaurants the developer has opened, such as if the developer attempts to transfer any interest in the agreement without prior written consent from Bojangles or if the developer ceases to operate a restaurant without Bojangles's consent. For Bojangles Express Restaurants, the option to purchase the assets of all restaurants upon default is not available.