In the event of death or mental incapacity of a person with interest in a Bojangles franchise, within what timeframe must the executor transfer the interest to a Franchisor-approved third party?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or mental incapacity of any person with a direct or indirect interest in this Agreement or in Franchisee, the executor, administrator, or personal representative of such person shall transfer the interest to a third party, including shareholder(s) or member(s) of Franchisee, approved by Franchisor within twelve (12) months after such death or mental incapacity, or, if legal proceedings make transfer within twelve (12) months not feasible, within such longer period as may be reasonable under the circumstances.
Such transfer, including, without limitation, transfer by devise or inheritance, shall be subject to the same conditions as any inter vivos transfer.
If an approved transfer has not been made within the aforementioned period, Franchisor shall have the option to purchase the Franchised Business at fair market value, and thereupon terminate this Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, in the event of the death or mental incapacity of someone holding an interest in the franchise, their executor, administrator, or personal representative has a specific timeframe to transfer that interest. The interest must be transferred to a third party approved by Bojangles within twelve months of the death or mental incapacity.
However, the FDD acknowledges that legal proceedings may sometimes hinder a transfer within that initial twelve-month period. In such cases, the timeframe can be extended to a period deemed reasonable under the specific circumstances. This flexibility aims to accommodate unforeseen delays caused by the legal system.
It's important to note that any transfer, including those by devise or inheritance, is subject to the same conditions as any other transfer made during the person's lifetime. If an approved transfer does not occur within the specified timeframe (either the initial twelve months or the extended reasonable period), Bojangles retains the option to purchase the franchised business at fair market value, which would then lead to the termination of the franchise agreement.