What constitutes a 'transfer' by a Bojangles franchisee, according to the Development Agreement?
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 a franchisee, as it relates to the Development Agreement, is broadly defined. It encompasses any transfer of interest, which includes granting a mortgage or any security interest, related to a Bojangles Restaurant. This definition extends to the Development Agreement itself, as well as any rights or obligations held by the franchisee under it. The definition also includes a transfer of interest in the franchisee entity itself.
This broad definition means that franchisees must seek approval from Bojangles for a wide range of transactions, not just outright sales of the business. For example, taking out a loan secured by the assets of the restaurant would be considered a transfer requiring franchisor approval. Similarly, any change in ownership or control of the franchisee entity would also trigger the transfer restrictions.
Bojangles retains the right to approve all transfers, but states that it will not unreasonably withhold approval. However, Bojangles maintains sole discretion to require the franchisee to meet certain conditions before approving a transfer of a controlling interest in a Restaurant, the Development Agreement, or any rights or obligations under it. This provision gives Bojangles significant control over who becomes a franchisee and ensures that any new franchisee meets their standards and is financially capable.