Upon termination of the Bojangles franchise agreement due to franchisee default, does Bojangles have a lien against the franchisee's personal property, and if so, what property is subject to the lien?

According to Bojangles's 2025 Franchise Disclosure Document, if the franchise agreement is terminated due to franchisee default, Bojangles has a lien against the franchisee's personal property. This means Bojangles can claim the franchisee's assets to cover outstanding debts or obligations.

The lien extends to all personal property, furnishings, equipment, signs, fixtures, and inventory owned by the franchisee. This property must be located on the premises operated under the franchise agreement at the time of the default. This provision protects Bojangles's financial interests in case of franchisee default by allowing them to seize and liquidate the specified assets.

This is a significant consideration for potential franchisees. It means that if a franchisee fails to meet their obligations and the franchise agreement is terminated, Bojangles can take possession of the restaurant's assets. Franchisees should carefully consider the financial implications of this lien and ensure they have a solid plan to meet their financial obligations under the franchise agreement. Franchisees should seek legal counsel to fully understand the implications of this clause.