What conditions must a Bojangles franchisee satisfy to obtain franchisor approval for a transfer?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Agreement | Summary |
|---|---|---|
| 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, a franchisee needs to meet several conditions to get approval from Bojangles for a transfer. These conditions ensure that the new franchisee is qualified and that Bojangles's interests are protected. These conditions apply to transfers of interest in a Restaurant, Development Agreement, or any rights or obligations. Bojangles retains the right to approve all transfers. However, Bojangles states that it will not unreasonably withhold approval, except that Bojangles has sole discretion to require that the franchisee meet certain conditions before approval of transfer of a controlling interest.
Specifically, the franchisee must satisfy all outstanding monetary obligations to Bojangles and not be in default of any agreements. The franchisee must sign a release and agree to remain liable for a specified period. The new franchisee must also assume all of the current franchisee's obligations, including those of any guarantor. The prospective franchisee must meet Bojangles's qualification standards, and all current agreements must be signed by the new franchisee, with guarantees from their shareholders or members if applicable.
Additionally, the franchisee must pay a transfer fee to Bojangles. If a party holds a security interest in the Development Agreement or any Restaurant developed under it, that party must give Bojangles the right to purchase its rights if the franchisee defaults under the security agreements. The transferee must acquire all development rights, all Restaurants opened under the Development Agreement, and all rights under all Franchise Agreements with Bojangles. For transfers related to a Franchise Agreement, the transferee must upgrade the Restaurant to then-current standards and complete required training programs. The original franchisee remains liable for obligations incurred prior to the transfer.