FranchiseVerdict
Bojangles logo
A53/100FDD 2024

Bojangles — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

Back to overview

Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
53 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
26
Government-backed loans issued
Default rate
8.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$27.1M
Avg loan size
$1.0M
Participating lenders
13

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 53/100 rating

Risk Score Breakdown

  1. 01MINORSlow unit growth (4.1% YoY) indicates mature/declining system momentum with only 813 units
  2. 02MEDHigh initial investment range ($720K-$3.8M) with 4% royalty burden and no disclosed net income data creates profitability uncertainty
  3. 03HIGHThree pending/recent litigation cases involving audit rights, confidentiality violations, and deceptive practices suggest franchisor-franchisee tension and governance issues
  4. 04MINORNo protected territory exposure creates direct competition risk and cannibalization potential within franchise system
  5. 05MEDMissing Item 19 (Average Unit Volumes) prevents validation of $2.35M average revenue claim and actual profitability benchmarks

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.