Under the Bojangles franchise agreement, what is the exception to the rule that premature termination of premises or default under a lease or mortgage constitutes a default?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, 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 Franchisee or of the Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
Based on the 2025 Bojangles Franchise Disclosure Document, if a franchisee ceases to operate or abandons the restaurant, or attempts to do so, or enters into an agreement to sell, sells, or attempts to sell the real property where the restaurant is located, or substantially all rights to the restaurant or real property lease, or substantially all of the franchisee's or the restaurant's assets without Bojangles' prior written consent, it constitutes a default. However, Bojangles may, instead of immediate termination, request a statement of intentions and assurances from the franchisee within 24 hours that no breach of the agreement is contemplated.
This exception provides a Bojangles franchisee with a chance to clarify their intentions and provide assurances to the franchisor, potentially avoiding immediate termination of the franchise agreement. This clause appears to give the franchisee an opportunity to resolve the issue before Bojangles takes immediate action.
It is important for a prospective Bojangles franchisee to understand the conditions under which a default can occur and the potential consequences, including termination of the franchise agreement. This clause highlights the importance of maintaining open communication with Bojangles and seeking their consent before making significant changes to the operation or ownership of the restaurant.