For Bojangles Express Restaurants, what real property interests is the Developer allowed to encumber?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) [For Bojangles Express Restaurants insert the following: "Nothing contained in this Development Agreement shall prevent or prohibit Developer from selling, assigning, transferring, conveying, giving away, pledging, mortgaging, granting security interests in or otherwise encumbering Developer's real property interests, including but not limited to fee or leasehold interests in any land or buildings, or Developer's interests in other hard assets, including any equipment and furnishings, but excluding any items which bear any of Franchisor's logos, trademarks, trade names or other proprietary marks.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, a Developer for a Bojangles Express Restaurant is not prohibited from encumbering their real property interests. This includes selling, assigning, transferring, conveying, giving away, pledging, mortgaging, or granting security interests in their real property. These real property interests include fee or leasehold interests in land or buildings. The Developer can also encumber their interests in other hard assets, such as equipment and furnishings.
However, this ability to encumber assets has a notable exception. The Developer cannot encumber any items that bear Bojangles' logos, trademarks, trade names, or other proprietary marks. This restriction protects Bojangles' brand identity and prevents its marks from being associated with potentially distressed assets.
This provision provides flexibility for Bojangles Express Restaurant Developers to manage their assets and secure financing. However, franchisees must be careful not to encumber branded items, which could lead to a breach of the development agreement.