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If a quick-service food competitor acquires a controlling interest in a Bojangles franchisee without prior written consent, what is Bojangles' right?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

#1

interest in Franchisee to any third party without Franchisor's prior written consent, contrary to the terms of Paragraph XIII. of this Agreement;

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to the 2025 Bojangles Franchise Disclosure Document, if a franchisee transfers a controlling interest to a third party without obtaining Bojangles' prior written consent, it constitutes a breach of the franchise agreement.

Specifically, the FDD states that it is a breach if the franchisee transfers a controlling interest in the Franchisee to any third party without Bojangles' prior written consent, contrary to the terms of Paragraph XIII of the agreement. This provision is designed to protect Bojangles' brand and ensure that the franchisee is managed by an approved operator.

This means that Bojangles retains the right to enforce the terms of the franchise agreement, potentially including termination of the agreement if such an unapproved transfer occurs. Prospective franchisees should be aware of these restrictions on transfer and ensure they obtain proper consent for any changes in ownership or control to avoid jeopardizing their franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.