If a Bojangles franchisee is in default of any agreement with Bojangles, can they transfer the franchise?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Copies of any default or termination notices under the Lease shall also be sent to Franchisor by overnight mail to 9432 Southern Pine Boulevard, Charlotte, NC 28273 Attn: Chief Legal Officer.
- (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;
criteria are met: (a) Franchisor has an established franchising program for Bojangles restaurants; and (b) the proposed franchisee has met Franchisor's applicable requirements and has executed a franchise agreement with Franchisor.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
The 2025 Bojangles Franchise Disclosure Document (FDD) does not explicitly state whether a franchisee in default can transfer their franchise. However, the FDD does state conditions under which the Franchise Agreement can be terminated due to default. Specifically, if a franchisee's other Bojangles agreements are terminated due to default, this can trigger termination of the franchise agreement. Also, the Landlord must send copies of any default or termination notices under the Lease to Bojangles' Chief Legal Officer.
Item 22 includes a lease addendum that outlines conditions for assignment of the lease to a new franchisee. This addendum states that the Franchisor must have an established franchising program and the proposed franchisee must meet Bojangles' requirements and execute a franchise agreement. The lease addendum does not mention default as a condition that would prevent the transfer.
Because the FDD does not directly address the question of transferability during default, prospective franchisees should seek clarification from Bojangles regarding their policy on franchise transfers when a franchisee is in default. Understanding the franchisor's position on this matter is crucial for assessing the risks and potential exit strategies associated with the franchise investment.