If Bojangles elects to purchase the Restaurants after the death or mental incapacity of a person with interest in the agreement, how will the payment be structured?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Such transfer, including, without limitation, transfer by devise or inheritance, shall be subject to the same conditions as any inter vivos transfer.
If an approved transfer has not been made within the aforementioned period, Franchisor shall have the option to purchase the Franchised Business at fair market value, and thereupon terminate this Agreement.
In the event that Franchisor elects to purchase the Franchised Business and terminate this Agreement in accordance with the foregoing, closing of the transaction shall take place as promptly as possible after Franchisor exercises its option to purchase, and the parties reach agreement concerning the fair market value of the Franchised Business.
Payment will be made in four (4) installments, the first of which shall be made at the time of closing and the remaining three (3) installments shall each be made at one (1) year intervals from the date of the first payment.
Interest shall be payable on the unpaid portion of the purchase price on the due date of each installment of principal at the prime rate of Bank of America on the date of Franchisor's election to purchase the Franchised Business.
If the parties are unable to agree on the fair market value of the Franchised Business, then the dispute will be settled by binding arbitration in Charlotte, North Carolina, in accordance with the rules and procedures of the American Arbitration Association.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, in the event of the death or mental incapacity of a person with interest in the agreement, the executor, administrator, or personal representative has a period of time to transfer the interest to a third party approved by Bojangles. If an approved transfer does not occur within this period, Bojangles has the option to purchase the Franchised Business at fair market value and terminate the agreement.
If Bojangles elects to purchase the Franchised Business, the closing of the transaction will occur as promptly as possible after Bojangles exercises its option to purchase, and the parties reach an agreement concerning the fair market value of the Franchised Business. The payment will be made in four installments. The first payment is made at the time of closing, and the remaining three installments are each made at one-year intervals from the date of the first payment.
Interest will be payable on the unpaid portion of the purchase price on the due date of each installment of principal at the prime rate of Bank of America on the date of Bojangles's election to purchase the Franchised Business. If the parties cannot agree on the fair market value of the Franchised Business, the dispute will be settled by binding arbitration in Charlotte, North Carolina, following the rules and procedures of the American Arbitration Association. This arrangement ensures a structured and fair process for both parties in the event of a transfer due to death or incapacity.