Under what circumstances might Bojangles require a franchisee to sell the assets of all Restaurants opened under a Development Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| o. Franchisor’s option to | Sections VIII.E. | If approved transfer of interest after death is not |
| purchase franchisee’s | ||
| business o. Franchisor’s option to | ||
| purchase franchisee’s | (except if | completed in designated period, we have option to |
| business | Development | purchase. Within 60 days of a non-curable default or |
| Agreement is for | 90 days of an uncured curable default under the | |
| Bojangles Express | Development Agreement, we may under certain | |
| Restaurants) and | circumstances purchase the assets of all Restaurants you | |
| IX.D. and E. | have opened under the Development Agreement. |
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, under certain circumstances, Bojangles may require a franchisee to sell the assets of all Restaurants opened under a Development Agreement. Specifically, within 60 days of a non-curable default or 90 days of an uncured curable default under the Development Agreement, Bojangles has the option to purchase these assets.
This provision in the Development Agreement means that if a franchisee fails to meet certain obligations, Bojangles has the right to step in and take over the operations of all Restaurants developed under the agreement. This could include financial defaults, operational failures, or other breaches of contract. The distinction between "non-curable" and "curable" defaults is important. A non-curable default is a serious breach that cannot be easily fixed, while a curable default is something that the franchisee has an opportunity to correct within a specified timeframe.
For a prospective Bojangles franchisee, this highlights the importance of understanding and adhering to the terms of the Development Agreement. Failure to do so could result in the loss of all Restaurants developed under the agreement. It also underscores the need for franchisees to have sufficient capital and operational expertise to successfully manage and grow their Bojangles franchise. Franchisees should seek legal counsel to fully understand their obligations and potential risks under the Development Agreement.
This type of clause is not uncommon in franchise agreements, as it protects the franchisor's brand and ensures consistent operation across all locations. However, the specific terms and conditions can vary significantly, so it is crucial for franchisees to carefully review the agreement and seek professional advice before signing.