Under what conditions related to bankruptcy will the Bojangles Development Agreement automatically terminate?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Developer shall be deemed to be in default under this Agreement, and all rights granted herein shall automatically terminate without notice to Developer, if Developer shall become insolvent or make a general assignment for the benefit of creditors; or if a petition in bankruptcy is filed by Developer or such a petition is filed against Developer and not opposed by Developer; or if Developer is adjudicated a bankrupt or insolvent; or if a bill in equity or other proceeding for the appointment of a receiver of Developer or other custodian for Developer's business or assets is filed and consented to by Developer; or if a receiver or other custodian (permanent or temporary) of Developer's assets or property, or any part thereof, is appointed by any court of competent jurisdiction; or if proceedings for a composition with creditors under any state or federal law should be instituted by or against Developer.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Development Agreement will automatically terminate if the developer becomes insolvent or makes a general assignment for the benefit of creditors. The agreement also terminates automatically if a bankruptcy petition is filed by the developer or against them, provided the developer does not oppose the petition.
Additionally, automatic termination occurs if the developer is adjudicated bankrupt or insolvent. If a bill in equity or other proceeding is filed for the appointment of a receiver of the developer or other custodian for the developer's business or assets, and the developer consents to it, the agreement is terminated.
Finally, the Bojangles Development Agreement is automatically terminated if a receiver or other custodian (permanent or temporary) of the developer's assets or property, or any part thereof, is appointed by any court of competent jurisdiction, or if proceedings for a composition with creditors under any state or federal law should be instituted by or against the developer.