Can a Bojangles franchisee transfer any interest in the franchise without prior written consent from Bojangles?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Franchisee or of the Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request.
In addition Franchisor may request, and Franchisee shall provide within five (5) business days thereafter, a performance bond from Franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee is restricted from transferring interests related to the restaurant without first obtaining written consent from Bojangles. Specifically, if a franchisee enters into an agreement to sell, sells, or attempts to sell the real property where the restaurant is located, or substantially all rights, title, and interest in the restaurant or real property lease, or substantially all of the assets of the franchisee or of the restaurant, they must obtain Bojangles's prior written consent.
This requirement ensures that Bojangles maintains control over who operates its franchises and the locations where they operate. Without this clause, a franchisee could potentially transfer the business to an unqualified or unsuitable party, which could harm the Bojangles brand and reputation. This provision allows Bojangles to vet potential new operators and ensure they meet the company's standards.
However, the FDD also states that if a franchisee attempts to take such actions without consent, Bojangles has the option to request a statement of intentions and assurances from the franchisee, within 24 hours of the request, that no breach of the agreement is contemplated. Bojangles may also request a performance bond from the franchisee, with the amount and issuing entity at Bojangles's discretion, to be provided within five business days. This provides Bojangles with some flexibility in addressing unauthorized transfer attempts, allowing them to either terminate the agreement or seek assurances and security from the franchisee.