Under what condition is a Bojangles franchisee NOT in breach if the premises are terminated?
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 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
The 2025 Bojangles Franchise Disclosure Document (FDD) outlines specific circumstances where a franchisee would not be considered in breach of their agreement if the premises are terminated. According to Item 23, this occurs when the franchisee provides a statement of intentions and assurances within 24 hours of the Franchisor's request, confirming that no event in breach of the agreement is contemplated.
In addition to providing the statement of intentions and assurances, Bojangles may request a performance bond from the franchisee within five business days. The amount of the bond and the issuing entity are determined at Bojangles's reasonable discretion.
This provision offers a Bojangles franchisee a chance to avoid immediate termination by demonstrating their commitment to the agreement and providing a performance bond if requested. However, it's important to note that Bojangles retains the right to determine the bond's amount and issuing entity, giving them significant control in this situation.