What financial obligations must be satisfied before a Bojangles franchise transfer is approved?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) If a transfer, alone or together with other previous, simultaneous, or proposed transfers, would have the effect of transferring a controlling interest in the right to operate the Restaurant, interest in this Agreement, or in the franchise rights or license rights granted hereunder, or in Franchisee, Franchisor may, in its sole discretion, if it does not elect to exercise its option to purchase set forth in Paragraph XV.D. herein, require any or all of the following as conditions of its approval:
(a) All of Franchisee's accrued and outstanding monetary obligations to third parties and all accrued and outstanding obligations to Franchisor, or any parent, subsidiary or affiliate of Franchisor shall have been satisfied;
(b) Franchisee shall not be in default of any provision of this Agreement, any amendment hereto or successor hereof, or any other agreement between Franchisee and Franchisor, it parents, subsidiaries, or affiliates;
(c) The transferor shall have executed a general release under seal, in a form satisfactory to Franchisor, of any and all claims against Franchisor and its officers, directors, shareholders or members, and employees, in their corporate and individual capacities, including, without limitation, claims arising under federal, state, and local laws, rules, and ordinances; and shall agree to remain liable to Franchisor for all affirmative obligations, covenants, and agreements contained herein for two (2) years following the effective date of transfer (or, if transferor retains a purchase money interest in the transferred business, for a period greater than two (2) years, until the interest is extinguished) or for such shorter period as Franchisor may, in its sole discretion, determine;
- (d) The transferee shall enter into a written assignment, under seal and in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under this Agreement; and, if the obligations of Franchisee were guaranteed by the transferor, the transferee shall guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must meet certain financial obligations to gain approval from Bojangles. Specifically, if the transfer would result in a change of controlling interest, Bojangles may require that all of the franchisee's outstanding monetary obligations to both third parties and to Bojangles (including its parents, subsidiaries, or affiliates) are fully satisfied.
In addition to settling outstanding debts, the franchisee must not be in default of any terms within the Franchise Agreement, any amendments to it, or any other agreements they have with Bojangles or its affiliates. This ensures that the franchisee is in good standing with Bojangles before transferring the franchise to someone else.
Furthermore, the transferor must execute a general release, absolving Bojangles and its personnel from any claims. They must also agree to remain liable for their obligations for a period of two years after the transfer, or longer if they retain a purchase money interest in the business. The transferee must also agree in writing to assume all of the franchisee's obligations under the Franchise Agreement. These conditions protect Bojangles's interests and ensure a smooth transition to the new franchisee.