When terminating a Bojangles franchise agreement, is the franchisee required to execute a general release of claims against Bojangles and its related entities?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO BOJANGLES INDIVIDUAL FRANCHISE AGREEMENT REQUIRED BY THE STATE OF NEW YORK
This Addendum to the Bojangles Individual Franchise Agreement dated ______________ ("Individual Franchise Agreement") between BOJANGLES OPCO, LLC ("Franchisor") and __________________________________________________ ("Franchisee") is entered into simultaneously with the execution of the Individual Franchise Agreement.
- 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Individual Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Franchisee was made in the State of New York; (B) Franchisee is a resident of the State of New York; and/or (C) the Restaurant will be located and/or operated in the State of New York.
- 2. Any provision in the Individual Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Sections 680 – 695, may not be enforceable.
- 3. The following sentence is added to the end of Sections II.B.(7), VII.B. and XIV.B.(3)(c):
Any provision in this Agreement requiring you to sign a general release of claims against us does not release any claim you may have under New York General Business Law, Article 33, Sections 680-695.
4. The following sentence is added to Section XIV.A:
We will not assign our rights under this Agreement, except to an assignee who in our good faith and judgment is willing and able to assume our obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, whether a franchisee is required to sign a general release of claims against Bojangles upon termination depends on the location of the franchise. Specifically, an addendum to the franchise agreement for franchisees in New York states that any provision requiring a general release of claims does not apply to claims arising under New York General Business Law, Article 33, Sections 680-695. This suggests that, outside of New York, such a release may be required.
For potential franchisees, this means that if you are planning to operate a Bojangles franchise in New York, you will not be required to sign a general release that would prevent you from making claims under New York franchise law. However, if you are opening a franchise in a different state, you may be required to sign a general release, which could limit your ability to pursue legal claims against Bojangles.
The FDD also includes a sample release form in an addendum for Maryland. This form requires the franchisee to release Bojangles from all claims arising under federal, state, and local laws, rules, regulations, and ordinances related to the franchise agreement. The franchisee also agrees to remain liable to Bojangles for obligations under the Franchise Agreement for a specified period. This release is given in exchange for Bojangles's consent to the transfer of the franchisee's rights under the Franchise Agreement. This form indicates that Bojangles may use similar forms in different transactions.
Prospective franchisees should carefully review the franchise agreement and any addenda specific to their state to understand the full scope of any release they may be required to sign. It is advisable to seek legal counsel to fully understand the implications of such a release and how it may affect their rights.