Under what condition related to the restaurant premises will a Bojangles franchisee NOT be in breach of the franchise agreement, even if the right to possession is terminated prematurely?

The 2025 Bojangles Franchise Disclosure Document (FDD) outlines specific conditions under which a franchisee will not be considered in breach of the franchise agreement, even if their right to possess the restaurant premises is terminated early. This protection applies if the franchisee is contesting the validity of the termination.

According to the FDD, if a Bojangles franchisee contests the termination of their franchise agreement, the party that operates the restaurant during the period from the termination notice date until a final, non-appealable judgment is entered must operate the restaurant for the benefit of the prevailing party. This operating party is then required to account for and transfer any profits earned during that period to the party that ultimately prevails in the dispute.

This clause ensures that the Bojangles restaurant continues to operate, maintaining service and brand presence, while the legal dispute is resolved. It also establishes a clear process for managing profits during the contested period, protecting the financial interests of whichever party is ultimately deemed to be in the right. This arrangement is designed to maintain the integrity of the Bojangles system and protect the brand's reputation, even during legal challenges.