Under what conditions can the Bojangles Addendum, and the development incentives offered, be terminated without notice to the Developer and without any opportunity to cure?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
4. Termination of Addendum.
- A. Grounds for Termination. This Addendum, and the equipment reimbursement incentives offered pursuant to this Addendum, shall terminate without notice to Developer, and without any opportunity to cure, if:
- (1) Developer fails to open any Restaurant on or before the applicable date set forth in the Development Schedule; or
- (2) Developer and/or any of Developer's affiliates receive a written notice of default under the Development Agreement, any Franchise Agreement or any other agreement with Franchisor or its affiliates and fail to cure the default within the applicable cure period, if any.
- B. Effect of Termination. If this Addendum is terminated, then Developer will not be entitled to receive any further equipment reimbursement incentives under the Program for future Qualifying Restaurants that Developer develops.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Equipment Reimbursement Incentive Program Addendum can be terminated without notice or opportunity to cure under specific circumstances. This termination impacts the developer's ability to receive further equipment reimbursement incentives for future restaurant development.
The addendum can be terminated if the developer fails to open any restaurant by the date specified in the Development Schedule. Additionally, termination can occur if the developer or any of their affiliates receive a written notice of default under the Development Agreement, any Franchise Agreement, or any other agreement with Bojangles or its affiliates, and they fail to cure the default within the given cure period.
This provision is significant for prospective franchisees as it highlights the importance of adhering to the Development Schedule and maintaining compliance with all agreements. Failure to meet these obligations can result in the loss of valuable equipment reimbursement incentives, impacting the overall financial viability of the franchise development plan. Franchisees should carefully review the Development Agreement and related documents to understand their obligations and the potential consequences of non-compliance.