What conditions must a Bojangles franchisee meet before Bojangles approves the transfer of a controlling interest in a Franchise Agreement or franchise or license rights?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| FA: Section XIII.B. | We have the right to approve all transfers but will not | |
| E. | unreasonably withhold approval, except we have sole | |
| IFA: Section XIV.B.- | discretion to require you to meet certain conditions | |
| E. | before our approval of transfer of a controlling interest | |
| RFA: Section XIII.B.- | in a Franchise Agreement or franchise or license rights | |
| E. | or obligations thereunder or in you. | |
| EFA: Section XV.B., | ||
| D.-F. | ||
| FA: Section XIII.B. | Satisfaction of all monetary obligations; no defaults; | |
| IFA: Section XIV.B. | sign release and agree to remain liable for specified | |
| RFA: Section XIII.B. | period; assumption of your obligations and obligations | |
| EFA: Section XV.B. | of any transferor who is a guarantor of your obligations; | |
| new franchisee qualifies; current agreements signed by | ||
| new franchisee and guarantee of such agreements | ||
| signed by shareholders or members of transferee; | ||
| transferee to upgrade Restaurant to then-current | ||
| standards; your continued liability for obligations prior | ||
| to transfer; completion of training programs by | ||
| transferee’s Designated Operator and Restaurant | ||
| managers; payment of transfer fee; and party to hold | ||
| security interest in Franchise Agreement or Restaurant | ||
| must give us right to purchase its rights in event you | ||
| default under security agreements. |
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 has the sole discretion to require a franchisee to meet certain conditions before approving the transfer of a controlling interest in a Franchise Agreement, franchise, or license rights. These conditions are put in place to ensure that the new franchisee is qualified and will continue to operate the franchise in accordance with Bojangles's standards.
Specifically, the franchisee must satisfy all monetary obligations, have no outstanding defaults, and sign a release agreeing to remain liable for a specified period. The new franchisee must also assume all obligations of the transferor, including any obligations of a guarantor. The new franchisee must meet Bojangles's qualifications, and all current agreements must be signed by the new franchisee, with guarantees from their shareholders or members.
Additionally, the franchisee must pay a transfer fee. If a party holds a security interest in the Franchise Agreement or Restaurant, they must grant Bojangles the right to purchase those rights in the event of a default under the security agreements. For a transfer related to a Development Agreement, the transferee must acquire all development rights, Restaurants opened under the Development Agreement, and all rights under all Franchise Agreements with Bojangles. These conditions ensure a smooth transition and protect Bojangles's interests.
For Bojangles Express Franchise Agreements, the transferee must upgrade the Restaurant to then-current standards and complete required training programs. The original franchisee also remains liable for obligations prior to the transfer. These additional requirements for Bojangles Express franchises reflect the brand's specific operational standards and training needs.