What is the relationship between the Bojangles's Item 5 development fee and the franchisor's bankruptcy as described in Item 4?

Based on the 2025 FDD, Bojangles requires a development fee of $10,000 for each restaurant a developer is authorized to develop under a Development Agreement. This fee is paid when the Development Agreement is signed, regardless of whether the restaurants are eventually developed. The FDD states that this fee is fully earned and non-refundable, covering Bojangles' administrative and other expenses related to entering the Development Agreement, as well as the lost opportunity to contract with other potential developers.

According to the 2025 FDD, when a franchisee signs a Development Agreement, they also sign a Franchise Agreement for the first restaurant they plan to develop. Bojangles will credit the $10,000 development fee paid for each restaurant against the $35,000 franchise fee, provided the franchisee signs the Franchise Agreement and pays the franchise fee by the time construction commences. This credit reduces the initial financial burden on the franchisee, incentivizing them to proceed with the development plans outlined in the agreement.

The excerpts from the 2025 FDD do not provide information about the franchisor's bankruptcy as described in Item 4. Therefore, the relationship between the development fee and any potential bankruptcy is not specified within the provided documentation. A prospective franchisee should refer to Item 4 of the FDD, and ask the franchisor directly about how the company's financial stability or any history of bankruptcy might affect the application or refundability of the development fee.