In the event of a Bojangles franchise transfer, what written agreement must the transferee enter into?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) At Franchisor's option, the transferee shall execute (and/or, upon Franchisor's request, shall cause all interested parties to execute), for a term ending on the expiration date of this Agreement, the then-current standard form of franchise agreement being offered to new System franchisees and other ancillary agreements, including a guarantee of such agreement executed by all shareholders or members of the transferee, as Franchisor may require for the Franchised Business, which agreements shall supersede this Agreement in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, a higher percentage royalty rate and advertising contribution; provided, however, that the transferee shall not be required to pay an initial franchise fee;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a transferee may be required to execute the then-current standard form of franchise agreement. This agreement would be for a term ending on the expiration date of the original agreement.
The new franchise agreement may also include other ancillary agreements, such as a guarantee executed by all shareholders or members of the transferee. Bojangles states that these agreements will supersede the original agreement in all respects. The terms of the new agreements may differ from the original franchise agreement.
These differing terms could include a higher percentage royalty rate and advertising contribution. However, the transferee will not be required to pay an initial franchise fee. The transferee may also be required to upgrade the restaurant to meet the then-current system standards and specifications.