Under what conditions can Bojangles terminate the Franchise Agreement with cause if the franchisee knowingly maintains false books or records?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| f. Termination by | FA: Section XIV. | |
| franchisor with cause | IFA: Section XV. | |
| RFA: Section XIV. | ||
| EFA: Sections XV.C. | ||
| and XVI. | ||
| FA: Section XIV.C. | ||
| IFA: Section XV.C. | ||
| RFA: Section XIV.C. | ||
| EFA: Section XVI.C. | ||
| FA: Section XIV.A. | Non-curable defaults include: bankruptcy, insolvency, | |
| and B. | appointment a receiver; creditors proceedings; failure to | |
| IFA: Section XV.A. | timely obtain site approval, construct, and open the | |
| and B. | Restaurant; conviction of certain crimes; unauthorized | |
| RFA: Section XIV.A. | transfer; disclosure of confidential information; | |
| and B. | knowingly maintaining false books or records or | |
| submitting any false reports; unauthorized use of | ||
| EFA: Sections XV.C., |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 55–63)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles can terminate the Franchise Agreement with cause if a franchisee knowingly maintains false books or records or submits any false reports. This is considered a non-curable default.
This means that if a Bojangles franchisee is found to be intentionally falsifying financial records or reports, Bojangles has the right to terminate the franchise agreement immediately. The franchisee does not have an opportunity to correct the issue. This is a serious breach of contract and reflects the importance of accurate financial reporting in the franchise system.
Most franchise agreements contain similar clauses regarding the accuracy of financial records, as the franchisor relies on this information for royalty calculations, system-wide performance analysis, and compliance with financial regulations. Franchisees must ensure they have proper accounting systems and practices in place to avoid any accusations of falsification, even unintentional ones.