What reliance does Bojangles place on the Developer's representations and assurances?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall bear the cost of any modifications to the preliminary plans and specifications provided to Developer by Franchisor.
Final plans and specifications must be
approved by Franchisor before the start of construction. Developer shall obtain, at its cost, the necessary permits required to construct the Restaurant and shall meet all other applicable requirements established by local statute, local ordinance or otherwise. By the earlier of the period prescribed in the Franchise Agreement or the "Construction Commencement Deadline" noted in the Development Schedule, whichever is shorter, Developer must (i) provide Franchisor with documentation satisfactory to Franchisor to confirm Developer's leasehold interest (including, without limitation, the executed Addendum to Lease Agreement form attached to this Agreement as Exhibit C) or ownership interest in the site; (ii) obtain Franchisor's prior written approval of Developer's Restaurant plans, (iii) obtain the insurance coverage required by Franchisor for the Restaurant; (iv) pay Franchisor's then-current franchise fee; and (v) commence construction of the Restaurant. Promptly after approval by Franchisor of Developer's final plans and specifications, Developer shall complete construction of the Restaurant and open for business by the earlier of the period prescribed in the Franchise Agreement or the "Opening Deadline" noted in the Development Schedule, whichever is shorter. [For Bojangles Express Restaurants, delete the first and second sentences of Paragraph IV.D. and substitute in their place the following: "Developer shall obtain and shall bear all costs associated with the development of plans and specifications for the construction of the Restaurant including those for any interior and exterior modifications or additions to the building or other structure where the Restaurant shall be located." Also, delete the fourth sentence and substitute the following in place thereof: "In addition, all signage on the convenience store or other structure's premises relating to the Bojangles restaurant must be approved by the Franchisor. Developer shall obtain, at its cost, the necessary permits required to construct the Restaurant and required in connection with any signage related to the Restaurant and shall meet all other applicable requirements established by local statute, local ordinance or otherwise."]
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
Based on the 2025 Bojangles Franchise Disclosure Document, the developer plays a crucial role in establishing a Bojangles restaurant, and Bojangles relies on the developer to meet specific obligations and conditions. The developer is responsible for various aspects of the restaurant's development, including securing necessary permits, ensuring compliance with local regulations, and meeting construction deadlines. Bojangles requires the developer to provide documentation confirming their leasehold or ownership interest in the site, obtain approval for restaurant plans, secure required insurance coverage, pay the franchise fee, and commence construction by specified deadlines.
Bojangles also places importance on the developer's adherence to brand standards and protection of confidential information. The developer must acknowledge the valuable training and confidential information they receive, including operational, sales, promotional, and marketing methods. They are obligated to protect Bojangles' proprietary marks, trade dress, and the overall system. The developer is prohibited from engaging in activities that could harm the brand's goodwill or compete with Bojangles restaurants, including involvement in competing restaurant businesses within specified areas.
Furthermore, Bojangles maintains certain controls over the developer's organization and capital structure. The developer must meet specific requirements regarding its legal structure, ownership composition, and financial stability. Bojangles requires developers to maintain a debt-to-equity ratio no greater than 1.5 to 1, excluding debts related to land and building acquisition. The developer must also agree to pay in full for the equipment and fixtures in their first Bojangles restaurant, rather than leasing or financing them. These stipulations ensure the developer's financial commitment and operational focus on the Bojangles brand.