For Bojangles Express Restaurants, what is the consequence if a Developer transfers a controlling interest to a competitor without prior written consent?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. **In the event that a quick-service food competitor of Franchisor acquires a controlling interest in Developer without Franchisor's prior written consent, Franchisor shall have the right at its option to terminate this Agreement and all rights granted hereunder without affording Developer any opportunity to cure the default upon ninety (90) days written notice to Developer.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a quick-service food competitor acquires a controlling interest in a Bojangles Express Restaurant developer without Bojangles's prior written consent, Bojangles has the option to terminate the Development Agreement. Bojangles must provide the developer with ninety (90) days written notice before terminating the agreement. The developer will not be given an opportunity to correct this issue.
This means that if a franchisee who is developing Bojangles Express Restaurants sells a controlling stake in their development company to a competing fast-food chain without first getting approval from Bojangles, the company can end the Development Agreement. This is a significant restriction, as it limits the developer's ability to sell their business to certain potential buyers.
This provision protects Bojangles from having its development plans influenced or controlled by a competitor. It ensures that the developer remains aligned with Bojangles's interests and strategies for expansion. Franchisees should be aware of this restriction and seek written consent from Bojangles before entering into any transaction that could result in a competitor gaining a controlling interest in their development company.