Does the Bojangles Franchisor have to approve a transfer of the franchise?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
binding arbitration in Charlotte, North Carolina, in accordance with the rules and procedures of the American Arbitration Association.
- E. Franchisor's consent to a transfer of any interest in Franchisee, rights to operate the Restaurant, interest in this Agreement or any license or franchise rights granted hereunder shall not constitute a waiver of any claims it may have against the transferring party, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms of this Agreement by the transferee.
- F. Franchisee acknowledges that any failure to comply with the requirements of this Paragraph XIII. will cause Franchisor irreparable injury, for which no adequate remedy at law may be available, and Franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in obtaining specific performance of, or an injunction against violation of, the requirements of this Paragraph XIII.
XIV. DEFAULT AND TERMINATION
- A. Franchisee shall be deemed to be in default under this Agreement, and all rights granted herein shall automatically terminate without notice to Franchisee, if Franchisee shall become insolvent or make a general assignment for the benefit of creditors; or if a petition in bankruptcy is filed by Franchisee or such a petition is filed against Franchisee and not opposed by Franchisee; or if Franchisee is adjudicated a bankrupt or insolvent; or if a bill in equity or other proceeding for the appointment of a receiver of Franchisee or other custodian for Franchisee's business or assets is filed and consented to by Franchisee; or if a receiver or other custodian (permanent or temporary) of Franchisee's assets or property, or any part thereof, is appointed by any court of competent jurisdiction; or if proceedings for a composition with creditors under any state or federal law should be instituted by or against Franchisee.
- B.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the franchisor's consent is required for any transfer of interest in the franchisee, rights to operate the restaurant, the franchise agreement, or any license or franchise rights. This consent does not waive any claims Bojangles may have against the transferring party, nor does it waive Bojangles's right to demand compliance with the agreement terms by the transferee.
If a transfer is not approved within a specific period, Bojangles has the option to purchase the franchised business at fair market value and terminate the agreement. The payment for the business will be made in four installments, with the first at closing and the remaining three at one-year intervals. Interest will be paid on the unpaid portion at the prime rate of Bank of America on the date Bojangles elects to purchase the business.
If the parties cannot agree on the fair market value, the dispute will be settled through binding arbitration in Charlotte, North Carolina, following the American Arbitration Association's rules. Failure to comply with these transfer requirements will cause irreparable injury to Bojangles, and the franchisee will be responsible for all court costs and reasonable attorney's fees incurred by Bojangles in enforcing these requirements.
This requirement is typical in franchising, as franchisors want to ensure that any new franchisee meets their standards and is capable of maintaining the brand's reputation and operational consistency. The franchisor's right of first refusal to purchase the business is also a common provision, allowing the franchisor to maintain control over the franchise network.