Under what conditions is the assignment of the Franchisee's rights to the lease to Bojangles effective upon termination, expiration, or non-renewal of the Franchise Agreement?

According to Bojangles's 2025 Franchise Disclosure Document, the franchisee assigns their rights, title, and interests in the lease to Bojangles upon the termination, expiration, or non-renewal of the Franchise Agreement. However, this assignment is only effective under specific conditions.

First, the Franchise Agreement must be terminated, not renewed, or expire without renewal. This also applies if Bojangles has exercised its option to purchase the restaurant under the Franchise Agreement. Second, Bojangles must notify both the franchisee and the landlord in writing that it is assuming the franchisee's obligations under the lease.

This clause protects Bojangles by ensuring they have control over the restaurant location if a franchise agreement ends. It allows Bojangles to continue operating a restaurant at that location, either directly or through another franchisee, which maintains brand presence and minimizes disruption. For a prospective franchisee, this means understanding that upon termination or non-renewal of their agreement, Bojangles has the right to step in and take over the lease, provided they meet the stated conditions.