What is the purpose of the Equipment Reimbursement Incentive Program Addendum for a Bojangles franchise?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
4. Miscellaneous.
- A. Advice of Counsel. Each party represents and warrants to the other party that it had the full and complete opportunity to review this document with an attorney of its own choosing in connection with considering the terms of this Addendum, and in evaluating whether or not to enter into this Addendum**.**
- B. Captions. The captions in this Addendum are for the sake of convenience only, and shall neither amend nor modify the terms of this Addendum.
- C. Capitalized Terms**.** Any capitalized term that is not defined in this Addendum shall have the meaning given it in the Franchise Agreement.
- D. Limited Modification.Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.
- E. Counterparts and Electronic Signature. This Addendum may be executed in multiple counterparts, each of which when executed and delivered shall be deemed to be an original and all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Addendum by electronic transmission (including an electronic signature platform such as DocuSign or the transmission of a scanned PDF document) shall be effective as delivery of a manually executed counterpart of this Addendum.
[Signatures follow on next page.]
IN WITNESS WHEREOF, the parties have duly executed, sealed and delivered this Addendum as of the day and year first above written.
| FRANCHISOR: BOJANGLES OPCO, LLC, |
|---|
| a Delaware limited liability company |
| By: |
| [Name] |
| [Title] |
| FRANCHISEE: |
| [ENTITY NAME], |
| a [State] [Type of Entity] |
| By: |
| [Name] |
| [Title] |
EQUIPMENT REIMBURSEMENT INCENTIVE PROGRAM ADDENDUM TO THE BOJANGLES DEVELOPMENT AGREEMENT
This Equipment Reimbursement Incentive Program Addendum (this "Addendum") to the Bojangles Development Agreement dated as of (the "Development Agreement") is made as of, by and between BOJANGLES OPCO, LLC, a Delaware limited liability company ("Franchisor"), and , a [State] [Entity Type] ("Developer"). RECITALS In order to encourage the development of franchised Bojangles restaurants ("Restaurants"), Franchisor has implemented an equipment reimbursement incentive program (the "Program"). Pursuant to the Development Agreement, Developer has agreed to develop and open three (3) or more Restaurants in the Assigned Area in accordance with the Development Schedule. pursuant to the Program. Franchisor and Developer are entering into this Addendum to modify the Development Agreement and to provide for Developer's receipt of the Program benefits offered by Franchisor NOW, THEREFORE, in consideration of the mutual covenants, agreements and obligations set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows: 1. Program Eligibility. In order to be eligible to receive, and continue receiving, the benefits of the Program, Developer acknowledges and agrees that it must satisfy the following conditions: A. 31, 2025 to develop at least three (3) new Restaurants; Developer must have signed the Development Agreement no later than December B. concessions from Franchisor or its affiliates; Developer may not participate in any other incentive programs under any other development agreements with Franchisor or its affiliates nor receive any other monetary C. If Developer executes multiple new development agreements with Franchisor simultaneously or in the same year, the Program will only apply to Developer's development agreement that has the most store commitments listed therein; and D. Franchisor and/or its affiliates. Developer and/or its affiliates must be in full compliance with the terms of the Development Agreement, any Franchise Agreement and any other agreement with 2. Program Benefits A. [Drafting Note: if the DA is for three or four restaurants] A "Qualifying Restaurant" is the first and second new Bojangles restaurants: (1) opened by Developer in the Assigned Area within four (4) years after the effective date of the Development
Agreement; (2) that is located on a site approved by Franchisor; (3) that is in compliance with the deadlines set forth on the Development Schedule attached to the Development Agreement and opened within the timelines set forth therein;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Equipment Reimbursement Incentive Program Addendum is designed to encourage the development of new franchised Bojangles restaurants. The addendum modifies the Development Agreement between Bojangles OPCO, LLC (the franchisor) and the developer, outlining the terms and conditions for the developer to receive benefits under the program. The program aims to incentivize developers to open new Bojangles restaurants by offering financial assistance with equipment costs.
To be eligible for the program, a developer must sign a new Development Agreement no later than December 31, 2025, committing to develop at least three new Bojangles restaurants. The developer cannot participate in other incentive programs or receive other monetary concessions from Bojangles or its affiliates. If a developer signs multiple new development agreements in the same year, the program applies only to the agreement with the most store commitments. Furthermore, the developer and its affiliates must fully comply with all agreements with Bojangles and its affiliates.
Under the program, Bojangles may reimburse the developer up to $300,000 of equipment costs for each new "Qualifying Restaurant." This reimbursement is typically provided within 30 days after the restaurant opens and after Bojangles receives satisfactory invoices confirming the equipment costs. A "Qualifying Restaurant" must meet specific criteria, including being opened in the assigned area within a certain timeframe (four years for agreements of three or four restaurants, or five years for agreements of five or more restaurants), being located on an approved site, complying with the development schedule, and having a fully executed Franchise Agreement.
The number of restaurants eligible for reimbursement varies based on the development commitments in the Development Agreement. This incentive is intended to lower the initial investment costs for new franchisees, thereby encouraging more rapid expansion of the Bojangles brand. The addendum ensures that both the franchisor and franchisee are aligned on the terms and conditions of the incentive program, promoting transparency and mutual benefit.