Can Bojangles terminate the franchise agreement immediately if a franchisee is convicted of a felony?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
isdiction; 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 has the right to terminate the franchise agreement immediately if a franchisee or any shareholder or member of the franchisee is convicted of a felony. This also applies to convictions for crimes involving moral turpitude, or any other crime or offense that is reasonably likely, in the sole opinion of Bojangles, to adversely affect the System, the Proprietary Marks, the Trade Dress, the goodwill associated therewith, or Bojangles's interest therein. The termination is effective immediately upon the franchisee's receipt of the termination notice, and Bojangles is not required to provide an opportunity to cure the default.
This clause highlights the importance of maintaining a clean criminal record for all individuals involved in the ownership and operation of a Bojangles franchise. The broad language regarding crimes that could "adversely affect the System" gives Bojangles significant discretion in determining whether a conviction warrants termination.
For a prospective franchisee, this means that a criminal conviction—even for something seemingly unrelated to the restaurant business—could jeopardize their investment. It is crucial to understand the types of offenses that Bojangles might consider grounds for termination and to ensure that all owners and shareholders are aware of this risk. This type of clause is not uncommon in franchise agreements, as franchisors seek to protect their brand and reputation from damage caused by franchisee misconduct.