Under what conditions, as outlined in Paragraph VIII.C.(6) and VIII.F.(6) of the Bojangles franchise agreement, is the franchise granted non-exclusively?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Franchisee acknowledges that this franchise is non-exclusive and is granted subject to the terms of Paragraph VIII.C.(6) and VIII.F.(6) hereof.
F. Upon termination of this Agreement, Developer shall have no right to establish or operate any Restaurant for which a Franchise Agreement has not been executed by Franchisor and delivered to Developer at the time of termination; and Franchisor shall be entitled to establish, and to license others to establish, Restaurants in the Assigned Area except as may be otherwise provided under any other agreement which is then in effect between Franchisor and Developer.
- (b) If Developer or any franchisee under a Franchise Agreement entered into pursuant to this Agreement ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, any Restaurant or enters into an agreement to sell or otherwise transfer, or sells or otherwise transfers, or purports or attempts to sell or otherwise transfer, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Developer, of the franchisee or of any Restaurant, without Franchisor's prior written consent, and Developer and the franchisee have failed to give adequate assurances and provide the performance bond as provided in Paragraph VIII. C. (6).
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the franchise granted is non-exclusive and is subject to the terms outlined in Paragraph VIII.C.(6) and VIII.F.(6) of the franchise agreement. This means that Bojangles retains the right to establish, or license others to establish, restaurants in the assigned area, except as may be otherwise provided under any other agreement in effect between Bojangles and the developer.
Paragraph VIII.C.(6) discusses the conditions under which Bojangles can pursue certain remedies if a developer or franchisee attempts to transfer any interest in the agreement or the restaurant without prior written consent. Specifically, if a franchisee ceases operation, abandons the restaurant, or attempts to sell the property without Bojangles's consent, and fails to provide adequate assurances or a performance bond, Bojangles has certain rights.
Paragraph VIII.F concerns the rights of Bojangles to establish or license others to establish restaurants in the assigned area upon termination of the agreement. This is subject to any other agreements in effect between Bojangles and the developer. This indicates that while a franchisee is granted the right to operate a Bojangles restaurant, this right is not exclusive, and Bojangles can license other franchisees or establish its own restaurants in the same area under certain conditions.