Under what condition can Bojangles terminate the Development Agreement without allowing the Developer an opportunity to cure the default?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
executed pursuant hereto or after expiration or earlier termination of any or all of them, offer for sale at any location, other than a Restaurant being then operated pursuant to a specific Franchise Agreement then in effect, any food or drink products prepared using in whole or part the procedures, processes, techniques, recipes or formulas provided by Franchisor to Developer.
- C. Developer acknowledges that any failure to comply with the requirements of this Paragraph VII. will cause irreparable injury to Franchisor, and Developer agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in obtaining specific performance of, or an injunction against violation of, the requirements of this Paragraph VII.
VIII. DEFAULT
- A. The rights granted to Developer in this Agreement have been granted in reliance on Developer's representations and assurances, among others, that the conditions set forth in Paragraphs I. and IV. of this Development Agreement will be met by Developer in a timely manner.
- B. Developer shall be deemed to be in default under this Agreement, and all rights granted herein shall automatically terminate without notice to Developer, if Developer shall become insolvent or make a general assignment for the benefit of creditors; or if a petition in bankruptcy is filed by Developer or such a petition is filed against Developer and not opposed by Developer; or if Developer is adjudicated a bankrupt or insolvent; or if a bill in equity or other proceeding for the appointment of a receiver of Developer or other custodian for Developer's business or assets is filed and consented to by Developer; or if a receiver or other custodian (permanent or temporary) of Developer's assets or property, or any part thereof, is appointed by any court of competent jurisdiction; or if proceedings for a composition with creditors under any state or federal law should be instituted by or against Developer.
- C. Upon occurrence of any of the following events, Developer shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted
hereunder, without affording Developer any opportunity to cure the default, effective immediately upon receipt of notice by Developer, or instead of terminating Developer, Franchisor may, at its discretion, elect any of the remedies set forth in Paragraph VIII.E.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, there are specific conditions under which Bojangles can terminate the Development Agreement without providing the developer an opportunity to cure the default. These conditions vary slightly depending on whether the restaurant is a standard Bojangles or a Bojangles Express Restaurant.
For all Bojangles restaurants, immediate termination without opportunity to cure can occur if the developer fails to comply with the Development Schedule for any restaurant within the specified time. It can also occur if the developer or any shareholder or member is convicted of a felony, a crime involving moral turpitude, or any other crime that could adversely affect the Bojangles system, proprietary marks, or goodwill. Additionally, if the developer becomes insolvent, makes an assignment for the benefit of creditors, files for bankruptcy, or has a receiver appointed, Bojangles can terminate the agreement immediately without an opportunity to cure.
For Bojangles Express Restaurants, an additional condition exists where Bojangles can terminate the agreement without an opportunity to cure. This occurs if a quick-service food competitor of Bojangles acquires a controlling interest in the developer without Bojangles's prior written consent. In this case, Bojangles must provide ninety (90) days written notice to the developer before termination.