exception

Under what circumstances would the laws of the state where the franchisee's principal office is located be used to interpret the Bojangles Franchise Agreement?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

  • A. This Agreement takes effect upon its acceptance and execution by Franchisor in the State of North Carolina, and shall be interpreted and construed under the laws of that State, which laws shall prevail in the event of any conflict of law; provided, however, that if any of the provisions of this Agreement would not be enforceable under the laws of North Carolina, then such provisions shall be interpreted and construed under the laws of the state in which the principal office of Franchisee is located.

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, the Franchise Agreement is generally interpreted under the laws of North Carolina, as that is where Bojangles accepts and executes the agreement. This is a common practice in franchising, where the franchisor's home state law often governs the agreement to ensure uniformity. However, there is an exception to this rule.

Specifically, if any provision within the Bojangles Franchise Agreement is deemed unenforceable under North Carolina law, then the laws of the state where the franchisee's principal office is located will be used to interpret and construe those specific provisions. This condition is designed to protect franchisees from being bound by clauses that are invalid in their home state, ensuring a degree of legal compliance across different jurisdictions.

This means that a Bojangles franchisee needs to be aware of the franchise laws in their own state and how they might interact with the terms of the Franchise Agreement. While most of the agreement will be governed by North Carolina law, any clauses that conflict with the franchisee's local laws will be interpreted according to those local laws, offering a safeguard against potentially unenforceable provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.