Can Bojangles terminate the franchise agreement immediately if a franchisee is convicted of a crime involving moral turpitude?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
tion; or if proceedings for a composition with creditors under any state or federal law should be instituted by or against Franchisee.
- B. Upon occurrence of any of the following events, Franchisee shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisee:
- (1) If Franchisee fails to: obtain Franchisor's approval of a site for the Restaurant by the Site Approval Deadline; commence construction of the Restaurant and pay the Franchise Fee by the Construction Commencement Deadline;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles can terminate the franchise agreement immediately if a franchisee or any shareholder or member of the franchisee is convicted of a crime involving moral turpitude. This falls under the conditions where Bojangles may terminate the agreement without affording the franchisee any opportunity to cure the default. The termination is effective immediately upon the franchisee's receipt of the notice.
This provision means that a conviction of a crime involving moral turpitude by the franchisee or a related party constitutes a severe breach of the franchise agreement. Bojangles does not need to provide a warning or an opportunity for the franchisee to rectify the situation. The immediate termination clause protects Bojangles's brand and reputation from potential damage caused by such convictions.
For a prospective Bojangles franchisee, this highlights the importance of maintaining a clean legal record. It also extends to ensuring that all shareholders or members associated with the franchisee entity also uphold similar standards. Failure to do so could result in the immediate loss of the franchise.
This type of clause is relatively common in franchise agreements, as franchisors seek to protect their brand image and maintain standards across their franchise network. Franchisees should be aware of these terms and understand the potential consequences of criminal convictions.