What happens if a Bojangles franchisee transfers interest without Bojangles' written consent?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
open, and within one (1) year of the final condemnation determination opens, a substitute Restaurant on a new site approved by Franchisor;
- (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.
- (9) If any other Franchise Agreement or Development Agreement for Bojangles restaurants or any other agreements with Franchisor or its affiliates entered into by Franchisee or its affiliates (or any beneficial owner(s) of Franchisee or its affiliates) is terminated based upon Franchisee's or its affiliates' (or any beneficial owner(s) of Franchisee's or its affiliates') default thereunder;
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What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, if a franchisee attempts to transfer interest without obtaining prior written consent from Bojangles, it constitutes a default under the agreement. Specifically, if the franchisee enters into an agreement to sell, sells, 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 the franchisee or of the restaurant, without Bojangles' prior written consent, it triggers the default clause.
However, 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. Additionally, Bojangles may request a performance bond from the franchisee, with the amount and issuing entity at Bojangles' discretion, to be provided within five business days.
Moreover, the FDD states that any failure to comply with the requirements of Paragraph XV will cause irreparable injury to Bojangles, for which no adequate remedy at law may be available. The franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Bojangles in obtaining specific performance of, or an injunction against violation of, the requirements of Paragraph XV.