Under what conditions is the Addendum to the Bojangles Express Franchise Agreement required for Maryland franchisees executed?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
- 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Express Franchise Agreement. This Addendum is being executed because: **(**A) the offer or sale of a franchise to Franchisee was made in the State of Maryland; (B) Franchisee is a resident of the State of Maryland; and/or (C) the Restaurant will be located and/or operated in the State of Maryland.
- 2. Fees. The following sentences are added to the end of Section IV.A:
Based upon Franchisor's securitization and financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by Franchisee shall be deferred until Franchisor completes its pre-opening obligations under the Franchise Agreement.
3. Releases. The following sentence is added to the end of Sections VII.B. and XV.B.(3)(c):
This release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
4. Choice of Law. The following sentence is added to the end of Section XXVI.A.:
Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall govern any claim arising under that Law.
5. Choice of Venue. The following sentence is added to the end of Section XXVI.B.:
Notwithstanding the foregoing, Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
6. Representations. The following paragraphs are added to the end of Section XXVII:
Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. Representations in this Agreement are not intended to, nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, an addendum to the Bojangles Express Franchise Agreement is required for Maryland franchisees under specific conditions. This addendum is executed simultaneously with the Renewal Franchise Agreement.
The addendum is required if (A) the offer or sale of a franchise to the franchisee was made in the State of Maryland, (B) the franchisee is a resident of the State of Maryland, and/or (C) the restaurant will be located and/or operated in the State of Maryland. This ensures that franchisees operating in Maryland receive specific protections and disclosures required by Maryland law.
Several sections of the franchise agreement are modified by this addendum to comply with Maryland law. Specifically, the addendum states that releases signed by the franchisee do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. It also specifies that the Maryland Franchise Registration and Disclosure Law governs any claim arising under that law, regardless of what the standard agreement says. Additionally, franchisees can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. The addendum also clarifies that the franchisor cannot require a prospective franchisee to waive liability under the Maryland Franchise Registration and Disclosure Law as a condition of purchasing the franchise.