Under what circumstances related to the restaurant premises can a Bojangles franchisee avoid being in breach of their agreement due to a premature termination of premises rights?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Franchisee or of the Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request.
In addition Franchisor may request, and Franchisee shall provide within five (5) business days thereafter, a performance bond from Franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
Based on the 2025 FDD, a Bojangles franchisee may face termination of their franchise agreement if they cease operating, abandon, or attempt to cease operating or abandon the restaurant. This also applies if the franchisee enters into an agreement to sell, sells, or attempts to sell the real property where the restaurant is located, or substantially all rights to the restaurant or real property lease, or substantially all of the assets of the franchisee or the restaurant, without obtaining prior written consent from Bojangles.
However, Bojangles may offer an alternative to immediate termination. In the event of any of the aforementioned actions, Bojangles has the option to request a statement of intentions and assurances from the franchisee. This statement must confirm that no event in breach of the agreement is being contemplated. The franchisee must provide this statement in writing within 24 hours of Bojangles' request.
In addition to the statement of intentions, Bojangles may also request a performance bond from the franchisee. The amount of the bond and the issuing entity will be determined at Bojangles' discretion, and the franchisee must provide the bond within five business days of the request. By complying with Bojangles' requests for a statement of intentions and providing a performance bond, a franchisee may avoid immediate termination of the franchise agreement, even if actions related to the restaurant premises might otherwise constitute a breach.