Under what circumstances does Bojangles require a franchisee to cease operations and turn over possession of the Restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| defaults for failure to comply with Agreement, and | ||
| others. | ||
| Obligations include among others: cease operations; | ||
| turn over possession and operation of Restaurant to us; | ||
| if we prevail in contest of validity of termination, pay | ||
| any profits earned during contest; cease use of | ||
| confidential information, Proprietary Marks and Trade | ||
| Dress; complete de-identification; pay amounts due; | ||
| return all correspondence, records and all other | ||
| materials related to operating the Restaurant; pay our | ||
| enforcements costs; and, with respect to the FA, IFA, | ||
| and RFA only, honor our option to purchase and refrain | ||
| from removing items from the Restaurant premises. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 55–63)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee may be required to cease operations and turn over possession of the Restaurant due to defaults for failure to comply with the Franchise Agreement. These obligations include ceasing operations and turning over possession and operation of the Restaurant to Bojangles.
Additional obligations upon termination include ceasing the use of confidential information, Proprietary Marks, and Trade Dress. The franchisee must also complete de-identification of the premises, pay all outstanding amounts due, and return all correspondence, records, and materials related to operating the Restaurant. Furthermore, the franchisee is responsible for covering Bojangles's enforcement costs.
For Franchise Agreements (FA), Individual Franchise Agreements (IFA), and Renewal Franchise Agreements (RFA), the franchisee must honor Bojangles's option to purchase the restaurant and refrain from removing items from the Restaurant premises. These stipulations are designed to ensure a smooth transition and protect Bojangles's brand and operational integrity upon termination of the franchise agreement.