What is the consideration given by Franchisor for the release of claims in the Bojangles franchise agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
RELEASE
("Prior Franchisee") hereby releases BOJANGLES OPCO, LLC ("Franchisor") together with its affiliates, officers, directors, shareholders, members, employees and partners, in their corporate and individual capacities, from any and all claims arising under federal, state and local laws, rules, regulations and ordinances and from any and all obligations under or related to the Franchise Agreement and Addendum dated by and between Prior Franchisee and Franchisor (the "Franchise Agreement"), whenever and however arising. Prior Franchisee further agrees to remain liable to Franchisor for all affirmative obligations, covenants, and agreements contained in the Franchise Agreement for two (2) years following the effective date of transfer (or, if transferor retains a purchase money interest in the transferred business, for a period greater than two (2) years, until the interest is extinguished) or for such shorter period as Franchisor may, in its sole discretion, determine. Prior Franchisee agrees to remain liable for three (3) years from the effective date of transfer for those obligations set forth in Paragraph VIII., IX, and X[Verify paragraph references] of the Franchise Agreement. This Release is given in consideration for the consent of Franchisor to the transfer of Prior Franchisee's rights under the Franchise Agreement. This Release sets forth the entire agreement of the parties hereto with respect to the matters herein and all other agreements of the parties, whether oral or written, are superseded hereby. This Release shall inure to the benefit of and be binding in all respects on each party hereto, its successors, assigns, affiliates, officers, directors, shareholders, members, employees and partners. Dated: Dated: [PRIOR FRANCHISEE] BOJANGLES OPCO, LLC [WE MAY USE THIS FORM OR SIMILAR VERSIONS OF THIS FORM IN DIFFERENT TRANSACTIONS]
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, the consideration given by Bojangles Opco, LLC (the Franchisor) for the release of claims from a prior franchisee is the consent of Bojangles to the transfer of the prior franchisee's rights under the Franchise Agreement. This means that in exchange for the prior franchisee releasing all claims against Bojangles, Bojangles agrees to allow the transfer of the franchise to a new owner.
This release covers any and all claims arising under federal, state, and local laws, rules, regulations, and ordinances, as well as obligations related to the Franchise Agreement between the prior franchisee and Bojangles. The prior franchisee also agrees to remain liable to Bojangles for all affirmative obligations, covenants, and agreements contained in the Franchise Agreement for two years following the effective date of transfer, or longer if the transferor retains a purchase money interest in the transferred business until that interest is extinguished. The prior franchisee remains liable for three years from the effective date of transfer for obligations set forth in Paragraphs VIII, IX, and X of the Franchise Agreement.
This agreement specifies that it represents the entire understanding between the parties regarding the release and supersedes any other agreements, whether oral or written. It benefits and binds each party, including their successors, assigns, affiliates, officers, directors, shareholders, members, employees, and partners. Bojangles may use this form or similar versions in different transactions.