If transferring a Bojangles franchise, must all outstanding monetary obligations to third parties be satisfied?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) If a transfer, alone or together with other previous, simultaneous, or proposed transfers, would have the effect of transferring a controlling interest in the Restaurant, interest in this Agreement, or in the franchise rights or license rights granted hereunder, or in Franchisee, Franchisor may, in its sole discretion, if it does not elect to exercise its option to purchase set forth in Paragraph XIII.C. herein, require any or all of the following as conditions of its approval:
(a) All of Franchisee's accrued and outstanding monetary obligations to third parties and all accrued and outstanding obligations to Franchisor, or any parent, subsidiary or affiliate of Franchisor shall have been satisfied;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer a controlling interest in their restaurant, franchise agreement, or franchise rights, Bojangles has the discretion to require certain conditions for approval of the transfer. One of these conditions is that all of the franchisee's accrued and outstanding monetary obligations to third parties must be satisfied. This also includes any outstanding obligations to Bojangles itself, or any of its parents, subsidiaries, or affiliates.
This requirement ensures that the new franchisee is not burdened with the previous owner's debts and starts with a clean financial slate. It also protects Bojangles's brand reputation by ensuring that its franchisees are financially responsible.
For a prospective Bojangles franchisee, this means that if they ever decide to sell their franchise, they must settle all outstanding debts to third parties and to Bojangles before the transfer can be approved. This could involve negotiating payment plans with creditors or using proceeds from the sale to pay off debts. Failure to meet this condition could delay or even prevent the transfer of the franchise.