Is a Bojangles franchisee's ability to transfer their interest in the franchise agreement subject to other agreements with the franchisor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, which may impose additional conditions and limitations on Franchisee's right to transfer its interest under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
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 any development agreements that may impose additional conditions and limitations on the franchisee's right to transfer their interest in the agreement.
This means that if a prospective 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 those outlined in the standard franchise agreement.
For example, a development agreement might require the franchisee to have opened a certain number of locations before being allowed to transfer any of their franchise rights. Alternatively, it could give Bojangles the right of first refusal to purchase the franchise if the franchisee decides to sell. Therefore, it is crucial for prospective franchisees to carefully review all agreements with Bojangles to fully understand the limitations on their ability to transfer their franchise in the future.