Is a Bojangles franchisee's ability to transfer their interest in the franchise agreement subject to other agreements between the franchisee and Bojangles?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
The foregoing remedies shall be in addition to any other remedies Franchisor may have.
XV. TRANSFER
- A. Franchisor shall have the right to transfer or assign all or any part of its rights or obligations herein to any person or legal entity.
- B. Transfer by Franchisee of the right to operate the restaurant, or any interest in this Agreement, the franchise rights and license rights, and/or in Franchisee are limited as follows:
(1) Franchisee's authority to transfer any interest under this Agreement is also subject to the terms of any other agreement between Franchisor and Franchisee, including a development agreement associated with this Agreement, which may impose additional conditions and limitations on Franchisee's right to transfer its interest under this Agreement.
(2) Franchisee understands and acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and its shareholders or members, and that Franchisor has granted this Agreement in reliance on Franchisee's business skill and financial capacity, and the business skill, financial capacity and personal character of Franchisee's shareholders or members.
Accordingly, neither Franchisee nor any immediate or remote successor to any part of Franchisee's interest in this Agreement, nor any individual, partnership, corporation, limited liability company or other legal entity which directly or indirectly owns any interest in the Restaurant, in this Agreement, or in Franchisee shall sell, assign, transfer, convey, give away, pledge, mortgage, grant a security interest in or otherwise encumber any direct or indirect right to operate the Restaurant, interest in this Agreement or franchise rights or license rights granted hereunder or any obligations hereunder or in Franchisee, without the prior written consent of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee's ability to transfer any interest in the franchise agreement is subject to the terms of any other agreements between the franchisee and Bojangles. This includes a development agreement, which may impose additional conditions and limitations on the franchisee's right to transfer its interest in the agreement.
This means that if a Bojangles franchisee has entered into any other agreements with Bojangles, such as a development agreement to open multiple locations, the terms of those agreements will also govern the franchisee's ability to sell or transfer their franchise. These additional agreements could place further restrictions or requirements on the transfer process beyond what is stated in the standard franchise agreement.
For a prospective Bojangles franchisee, this highlights the importance of carefully reviewing all agreements with Bojangles to fully understand the conditions under which they can transfer their franchise. It is essential to consider these potential limitations before signing any agreements, as they could significantly impact the franchisee's exit strategy or ability to sell the business in the future. Franchisees should seek legal counsel to fully understand the implications of these transfer provisions.