What happens upon the death or mental incapacity of a person with an interest in a Bojangles Development Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Agreement. |
| Provision | Section in | Summary |
|---|---|---|
| Development | ||
| Agreement | ||
| p. Death or disability of | Section IX.E. | Upon the death or mental incapacity of any person with a |
| franchisee | ||
| direct or indirect interest in you or the Development | ||
| Agreement, interest shall be transferred within | ||
| 12 months after the death or mental incapacity to a | ||
| third party approved by us. | ||
| q. Non-competition | No diversion of business or customers to any | |
| covenants during the | ||
| term of the franchise | ||
| competitor; no injury of our goodwill; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 55–63)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Section IX.E. of the Development Agreement addresses the death or mental incapacity of someone holding an interest in the agreement. In such an event, the interest must be transferred to a Bojangles-approved third party within 12 months.
Additionally, Section IX.D.[E.] outlines that if the involved parties cannot agree on the fair market value of the Bojangles Restaurants to be sold following the death or mental incapacitation, the dispute will undergo binding arbitration. This arbitration will occur in Charlotte, North Carolina, facilitated by the American Arbitration Association.
These provisions ensure business continuity and provide a structured process for resolving valuation disagreements, which is a common practice in franchising to protect both the franchisor's and franchisee's interests. The stipulation for Bojangles's approval of the third party ensures that any new party meets the brand's standards and qualifications.