For Bojangles Express Restaurants, what happens if a controlling interest in the Developer is transferred to a competitor of the Franchisor without prior written consent?

According to Bojangles's 2025 Franchise Disclosure Document, specifically for Bojangles Express Restaurants, if a quick-service food competitor acquires a controlling interest in the Developer without Bojangles's prior written consent, Bojangles has the option to terminate the Development Agreement and all rights granted under it. This termination can occur without providing the Developer an opportunity to correct the situation. Bojangles must provide the Developer with ninety (90) days written notice before terminating the agreement.

This clause is designed to protect Bojangles from having its business strategies and proprietary information fall into the hands of a competitor. A "controlling interest" typically means the ability to direct the management and policies of the Developer, which could be used to benefit the competing quick-service food business. The requirement for prior written consent gives Bojangles the opportunity to assess the potential impact of such a transfer and decide whether to allow it.

For a prospective Bojangles Express franchisee, this means that any potential sale or transfer of a controlling interest in their development company must be carefully considered and approved by Bojangles. Failure to obtain this consent could result in the termination of the Development Agreement, potentially leading to a loss of the right to develop further Bojangles restaurants. This provision underscores the importance of maintaining a good relationship with Bojangles and adhering to the terms of the Development Agreement.