Under what conditions related to a lease or mortgage can a Bojangles franchise be terminated?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided herein, the initial term of this Agreement shall expire twenty (20) years from the date the Restaurant first opens for business; provided, however, that if Franchisee's approved location is leased, this Agreement shall expire at the earlier of twenty (20) years from the date the Restaurant first opens for business or upon expiration or termination of the initial term of the lease.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Franchise Agreement can be impacted by lease-related issues. Specifically, if a franchisee's approved location is leased, the Franchise Agreement will expire at the earlier of twenty years from when the restaurant first opened, or upon the expiration or termination of the initial term of the lease. This means that the duration of the lease directly affects the term of the franchise agreement.
This condition is significant for prospective Bojangles franchisees because it ties the franchise term to the lease term. If the lease expires or is terminated before the 20-year mark, the franchise agreement also terminates, regardless of the initial term agreed upon. This could occur due to various reasons, such as the landlord not renewing the lease or the franchisee breaching the lease terms, leading to its termination.
To mitigate this risk, a potential Bojangles franchisee should carefully negotiate the terms of the lease with the landlord, ensuring that the lease term aligns with their expectations for the franchise term and includes renewal options. Additionally, the franchisee should maintain compliance with the lease terms to avoid any breach that could lead to termination. Understanding these lease-related conditions is crucial for the long-term stability and success of a Bojangles franchise.