What happens if a Bojangles franchisee attempts to transfer their interest without 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, if a franchisee attempts to sell their restaurant or its assets without Bojangles's prior written consent, it constitutes a breach of the franchise agreement. Specifically, this includes selling the real property where the restaurant is located, the restaurant itself, the real property lease, or substantially all of the franchisee's assets or the restaurant's assets.
In the event of such an unauthorized attempt to sell or transfer interests, Bojangles has the right to request a statement of intentions and assurances from the franchisee. This statement must be provided in writing within 24 hours of Bojangles's request, ensuring a swift response and clarification of the franchisee's actions.
Furthermore, Bojangles can demand a performance bond from the franchisee. The amount of this bond and the issuing entity are determined at Bojangles's discretion. This bond serves as a financial guarantee that the franchisee will adhere to the terms of the agreement, even after the attempted unauthorized transfer. These measures allow Bojangles to maintain control over who operates a franchise and ensure brand consistency.
If a franchisee fails to obtain prior written consent before attempting to transfer their interest, Bojangles retains the right to terminate the franchise agreement. However, instead of immediate termination, Bojangles may first seek assurances and a performance bond from the franchisee, providing an opportunity for the franchisee to rectify the situation and avoid termination.