Under what conditions is the assignment of the lease from the Bojangles franchisee to the franchisor effective upon termination, expiration, or non-renewal of the Franchise Agreement?

According to Bojangles's 2025 Franchise Disclosure Document, a franchisee's lease assignment to Bojangles becomes effective upon the termination, expiration, or non-renewal of the Franchise Agreement under specific conditions. The franchisee assigns all rights, title, and interests in the lease to Bojangles with the landlord's consent. However, this assignment is only effective if the Franchise Agreement is terminated, not renewed, or expires without renewal, or if Bojangles has exercised its option to purchase the restaurant as per the Franchise Agreement.

Additionally, for the assignment to be effective, Bojangles must notify both the franchisee and the landlord in writing that Bojangles assumes the franchisee's obligations under the lease. This notification is a critical step, ensuring all parties are aware of the change in responsibility for the lease terms. Bojangles also has the right, but not the obligation, to cure any breach of the lease by providing written notice to the franchisee and landlord, and in doing so, can succeed to the franchisee's rights and interests under the lease.

This clause protects Bojangles by allowing them to maintain control of the restaurant location even if a franchisee's agreement ends. It also ensures that the landlord is informed and that Bojangles assumes the lease obligations in writing, providing clarity and legal certainty. For a prospective franchisee, this means understanding that upon termination or non-renewal of their agreement, Bojangles has the right to take over the lease if they choose to do so, provided they notify all parties involved in writing.