According to the Bojangles Development Agreement, what constitutes a 'transfer' by the franchisee?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Development Agreement | ||
| i. Franchisee’s | Section VIII.E.(3) and | You must not establish or operate any Restaurant for |
| obligations on | ||
| termination/non-renewal | ||
| (5) and F. | which a Franchise Agreement has not been signed by us and delivered to you prior to termination and we can establish and license others to establish Restaurants in the Assigned Area. Under certain circumstances, you must sell the assets of all of the Restaurants you have opened under the Development Agreement to us. | |
| j. Assignment of contrac | No restrictions on our right to assign. | |
| by franchisor | ||
| k. “Transfer” by | Includes transfer of interest (including mortgage or grant | |
| franchisee - definition k. “Transfer” by | ||
| franchisee - definition | of security interest) in a Restaurant, in Development Agreement or in any rights |
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, a 'transfer' by the franchisee, as it relates to the Development Agreement, includes the transfer of any interest in the restaurant, the Development Agreement itself, or any rights or obligations associated with it. This also includes any transfer of interest in the franchisee entity. The transfer can take the form of a mortgage or the granting of a security interest.
This definition is important because it establishes a broad scope of what Bojangles considers a transfer, which then triggers certain requirements and restrictions outlined in the Development Agreement. Franchisees need to be aware that even actions like taking out a loan secured by the restaurant assets could be classified as a transfer requiring franchisor approval.
Bojangles retains the right to approve all transfers, but states that it will not unreasonably withhold such approval. However, Bojangles maintains sole discretion to require the franchisee to meet certain conditions before approving a transfer of a controlling interest. These conditions are put in place to ensure that any new franchisee meets the brand's standards and is financially capable of operating the franchise successfully.