Under what circumstances does Bojangles Franchisor have the right to immediately enter and take possession of a Restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to maintain continuous operation of the Restaurant and to promote the best interests of the System, in the event this Agreement is terminated, Franchisor shall have the right immediately upon termination to enter and take possession of and operate the Restaurant.
Nothing herein contained in Paragraph XIV.E. shall be intended to give Franchisor control of Franchisee's employees.
- F.
In the event that this Agreement is terminated and Franchisee contests the validity of the termination, the party that operates the Restaurant during the period commencing with the date that notice of termination was given and ending with the date upon which a final notice and nonappealable judgment resolving the issue is entered, shall operate the Restaurant for the benefit of the prevailing party in such contest, and shall account for, and pay over, any profits earned during said period to the other party, if such other party is the party that prevails.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, specifically Item 22, Bojangles has the right to immediately enter and take possession of a restaurant if the Franchise Agreement is terminated. This action is taken to maintain continuous operation of the restaurant and to promote the best interests of the Bojangles system.
This clause means that if Bojangles terminates the franchise agreement for any reason, they can immediately step in and operate the restaurant. This ensures that the restaurant remains open and continues to serve customers, protecting the brand's reputation and market presence. The FDD clarifies that taking possession of the restaurant does not give Bojangles control over the franchisee's employees.
Furthermore, if the franchisee contests the termination, the party operating the restaurant from the notice of termination until a final judgment must operate it for the benefit of the prevailing party. This party must also account for and pay over any profits earned during that period to the prevailing party. This arrangement ensures fairness during legal disputes over the termination.
This immediate right of possession is a significant protection for Bojangles, allowing them to maintain brand standards and operational continuity even during disputes or after a franchisee's default. However, it also places a risk on the franchisee, who could lose control of their business immediately upon termination, even if the termination is later disputed.