Under what circumstances is the Addendum to the Bojangles Development Agreement required for North Dakota franchisees executed?

According to Bojangles's 2025 Franchise Disclosure Document, the Addendum to the Bojangles Development Agreement for North Dakota franchisees is executed simultaneously with the Development Agreement under specific circumstances. This addendum is required when the offer or sale of a franchise is made in North Dakota, the franchisee is a resident of North Dakota, or the assigned area for the franchise development will be located in North Dakota.

This addendum is crucial because it addresses specific concerns raised by the North Dakota Securities Commissioner regarding franchise agreements. These concerns relate to provisions that could be deemed unfair, unjust, or inequitable to North Dakota franchisees under North Dakota law. The addendum ensures that the Bojangles franchise agreement complies with North Dakota regulations, specifically addressing issues such as restrictive covenants, the situs of arbitration proceedings, restrictions on forum, liquidated damages and termination penalties, applicable laws, waivers of trial by jury, waivers of exemplary and punitive damages, general releases, and limitations of claims.

For a prospective Bojangles franchisee in North Dakota, this addendum provides additional protection and clarity regarding their rights and obligations. It modifies the standard Development Agreement to align with North Dakota law, potentially preventing disputes over unfavorable terms. Franchisees should carefully review this addendum with legal counsel to fully understand its implications and how it affects their franchise agreement. This ensures that the franchisee is aware of their rights and that the agreement complies with North Dakota's franchise regulations.