When renewing a Bojangles franchise agreement, is the franchisee required to execute a general release of claims against the Franchisor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) Franchisee shall have executed Franchisor's then-current form of franchise agreement, which agreement shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher percentage royalty fee and advertising contribution; provided, however, that Franchisee shall pay, in lieu of a franchise fee, a renewal fee equal to fifty percent (50%) of the then-current franchise fee;
- (7) Franchisee shall execute a general release, in a form prescribed by Franchisor, of any and all claims against Franchisor and its parents, subsidiaries and affiliates, and their respective officers, directors, agents, and employees; and
- (8) Franchisee shall comply with Franchisor's then-current qualification and training requirements.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee must execute a general release in a form prescribed by Bojangles when renewing their franchise agreement. This release covers any and all claims against Bojangles, its parents, subsidiaries, affiliates, and their respective officers, directors, agents, and employees.
In practical terms, this means that as a condition of renewing their franchise agreement, a franchisee gives up the right to sue Bojangles for any past issues or grievances. This is a significant point for potential franchisees to consider, as it could limit their legal options should disputes arise during the initial term of their agreement.
Such a requirement is not uncommon in franchising. Franchisors often use general releases to ensure a clean slate upon renewal and avoid potential litigation related to the previous term. However, franchisees should carefully evaluate any existing or potential claims before signing such a release, as they will be forfeiting their right to pursue those claims in the future. Franchisees should seek legal counsel to fully understand the implications of signing a general release.
In addition to executing a general release, the franchisee must also execute Bojangles's then-current form of franchise agreement, which will supersede the original agreement. The terms of the new agreement may differ from the original, potentially including higher royalty fees and advertising contributions. The franchisee will also pay a renewal fee equal to fifty percent (50%) of the then-current franchise fee, instead of a full franchise fee. Finally, the franchisee must comply with Bojangles's then-current qualification and training requirements.