Under what circumstances regarding payments to suppliers or landlords could a Bojangles franchisee be considered in default?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in Paragraphs XV.A. and XV.B. of this Agreement, Franchisee shall have ten (10) days for a monetary default and thirty (30) days for any other default after its receipt from Franchisor of a written notice of default within which to remedy any default hereunder and to provide evidence thereof to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee can be in default for monetary reasons if they fail to make payments. Paragraph XV.C states that a franchisee has ten days to remedy a monetary default after receiving written notice from Bojangles. This implies that failure to pay royalties, advertising fees, or other amounts owed to Bojangles within this cure period would constitute a default.
While the provided excerpts do not explicitly detail default scenarios related to suppliers or landlords, they do highlight the importance of the lease agreement between the franchisee and the landlord. Specifically, the landlord is required to provide Bojangles with copies of any default or termination notices sent to the franchisee. This suggests that a default on lease payments, leading to a termination notice, could have significant repercussions for the franchisee's agreement with Bojangles. However, the excerpts do not state that failure to pay suppliers would be a default under the franchise agreement.
Prospective Bojangles franchisees should seek clarification from the franchisor regarding specific default scenarios related to supplier payments and the lease agreement. Understanding the full scope of financial obligations and potential default triggers is crucial for managing the business effectively and maintaining a good standing with both Bojangles and the landlord.