What requirements must Bojangles franchisees meet regarding lease terms, including assignment options and quiet enjoyment provisions?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain our written approval of the terms of any lease or mortgage for any site on which a Restaurant is to be developed. The lease or mortgage must permit assignment to us in the event of default by you under the lease, mortgage, deed of trust, or any agreement between you and us. The documents must provide, in form and substance satisfactory to us, provisions for quiet enjoyment, subordination, and mutual attornment. Leases and mortgages must be bona fide and provide financial terms consistent with those prevalent in the area. Leases must also provide for a term not less than the term of the Franchise Agreement for the Restaurant to be developed on the site. You must use your best efforts to obtain an option to renew the Lease on stated financial terms which, if exercised, will, when added to the initial term, be for a period of not less than an additional twenty years. As part of the Franchise Agreement, you and your landlord must execute the Addendum to the Lease Agreement, which is Exhibit D to the Franchise Agreement, that provides, in pertinent part, the requirement that the landlord provide us notice of any default and permits us to assume the lease, at our option, upon your default of your lease obligations.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–37)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees must obtain written approval from Bojangles for the terms of any lease or mortgage for the restaurant site. The lease or mortgage must allow assignment to Bojangles in the event the franchisee defaults under the lease, mortgage, deed of trust, or any agreement between the franchisee and Bojangles. The lease documents must include provisions for quiet enjoyment, subordination, and mutual attornment in a form and substance satisfactory to Bojangles.
The lease's financial terms must align with those prevalent in the area, and the lease term must be no less than the term of the Franchise Agreement for the restaurant. Franchisees must use their best efforts to obtain an option to renew the lease on stated financial terms which, if exercised, will, when added to the initial term, be for a period of not less than an additional twenty years.
As part of the Franchise Agreement, the franchisee and their landlord must execute an Addendum to the Lease Agreement. This addendum requires the landlord to provide Bojangles with notice of any default and permits Bojangles to assume the lease, at its option, if the franchisee defaults on their lease obligations. These requirements ensure that Bojangles has some control over the restaurant location and can protect its interests if a franchisee fails to meet their obligations.