In the Bojangles franchise agreement, what information is required regarding the franchisee's entity, specifically the [ENTITY NAME]?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
[Signatures follow on next page.]
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Agreement as of the Effective Date, which is . ATTEST: By: [Name] Secretary FRANCHISOR: BOJANGLES OPCO, LLC, a Delaware limited liability company By: [Name] [Title] FRANCHISEE: [ENTITY NAME], a [State] [Type of Entity] By: [Name] [Title] MANAGING OWNER OF FRANCHISEE, in his/her individual capacity [Name] [OTHER SHAREHOLDERS OR MEMBERS] OF FRANCHISEE, in his/her individual capacity**:** [Name] [Name] The shares represented by this certificate, or other evidence of ownership if Franchisee is a limited liability company, are subject to the terms of an agreement dated [date] between [name of issuing corporation or limited liability company] and BOJANGLES OPCO, LLC, which, inter alia, restricts transfer, restricts activities in which [name of issuing corporation or limited liability company] may engage, and imposes restrictions on shareholders or members.
- (7) Franchisee shall not be owned by two (2) owners who each own fifty percent (50%) of the ownership interests in Franchisee. Franchisee shall maintain a current list of all owners of record, including all members if Franchisee is a limited liability company, and all beneficial owners of any class of securities of Franchisee and shall furnish the list to Franchisor at such time as Franchisor may request.
- B. As of the Effective Date, Franchisee shall have, with respect to the Restaurant, a ratio of debt to equity no greater than 1.5 to 1. Calculation of a debt to equity ratio for purposes hereof shall exclude equity interests in, and debts incurred as a result of, the acquisition of land and building, but shall include equity interests in, and debts incurred as a result of, the acquisition of equipment and inventory, training, the Franchise Fee, start-up costs, initial point of purchase materials, landscaping, signage and prepaid expenses. Franchisee shall, prior to the execution of this Agreement, furnish Franchisor with evidence, satisfactory to Franchisor in its sole discretion, of its compliance with the requirement set forth in this paragraph.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the franchise agreement requires specific details about the franchisee's entity. The agreement itself is made between Bojangles OpCo, LLC, and the franchisee entity, with the franchisee entity's name and the effective date of the agreement clearly stated on the cover page of the franchise agreement.
Furthermore, the franchise agreement requires that the franchisee specify the type of entity they are (e.g., a limited liability company) and the state in which the entity is registered. The agreement also stipulates that if the franchisee is a corporation or limited liability company, the shares or ownership interests are subject to an agreement that restricts transfer and activities, and imposes restrictions on shareholders or members. Bojangles also requires a current list of all owners of record, including members if the franchisee is a limited liability company, and all beneficial owners of any class of securities, to be furnished upon request.
Additionally, Bojangles mandates that the franchisee cannot be owned by two owners who each hold fifty percent of the ownership interests. This likely aims to prevent deadlock situations in decision-making. The franchisee must also maintain a debt-to-equity ratio no greater than 1.5 to 1, excluding debts and equity related to land and building acquisition but including those related to equipment, inventory, training, franchise fees, start-up costs, and other initial expenses. The franchisee must provide evidence of compliance with this financial requirement before the agreement is executed.