Must a Bojangles franchisee be in compliance with all agreements with Bojangles to transfer their interest?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
he effective date of the transfer, and shall execute any and all instruments reasonably requested by Franchisor to evidence such liability;
- (i) At the transferee's expense, transferee's Managing Owner, Designated Operator, and managers, shall complete any training and certification programs then in effect for franchisees upon such terms and conditions as Franchisor may reasonably require; and
- (j) Franchisee shall pay to Franchisor a transfer fee of five thousand dollars ($5,000) per Restaurant, which constitutes Franchisor's reasonable costs and expenses (including legal and accounting expenses) in connection with Franchisor's review of the application to transfer.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, a franchisee looking to transfer their interest in the franchise must meet certain conditions to ensure the transferee's ability to fulfill the obligations of the franchise agreement. Bojangles requires that each condition is met by the potential transferee to guarantee their full performance under the agreement.
Specifically, the FDD states that the Managing Owner, Designated Operator, and managers of the transferee must complete any training and certification programs that Bojangles has in effect for franchisees. These programs must be completed at the transferee's expense and under the terms and conditions that Bojangles may reasonably require. Additionally, the franchisee is responsible for paying Bojangles a transfer fee of $5,000 per restaurant. This fee is intended to cover Bojangles' reasonable costs and expenses, including legal and accounting fees, associated with reviewing the transfer application.
These stipulations ensure that any new franchisee is adequately trained and financially prepared to take on the responsibilities of operating a Bojangles franchise, protecting the brand and maintaining consistent standards across all locations. Furthermore, Bojangles retains the right to purchase any interest in the restaurant or the franchise agreement if a franchisee desires to accept an offer from another party, ensuring that Bojangles has control over who becomes a franchisee within their system.