factual

For how long does a Bojangles transferor remain liable to Bojangles after the effective date of the transfer?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

y amendment hereto or successor hereof, or any other agreement between Franchisee and Franchisor, its parents, subsidiaries, or affiliates;

  • (c) The transferor shall have executed a general release under seal, in a form satisfactory to Franchisor, of any and all claims against Franchisor and its officers, directors, shareholders, and employees, in their corporate and individual capacities, including, without limitation, claims arising under federal, state, and local laws, rules, and ordinances; and shall agree to remain liable to Franchisor for all affirmative obligations, covenants, and agreements contained herein for two (2) years following the effective date of transfer (or, if transferor retains a purchase money interest in the transferred business, for a period greater than two (2) years, until the interest is extinguished) or for such shorter period as Franchisor may, in its sole discretion, determine;
  • (d) The transferee shall enter into a written assignment, under seal and in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's

obligations under this Agreement; and, if the obligations of Franchisee were guaranteed by the transferor, the transferee shall guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;

  • (e) The transferee shall demonstrate to Franchisor's satisfaction that the transferee meets Franchisor's educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating;

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, a transferor remains liable to Bojangles for a period of two years following the effective date of the transfer. However, there are exceptions to this general rule. If the transferor retains a purchase money interest in the transferred business, the liability extends beyond two years, lasting until the purchase money interest is extinguished.

Bojangles also retains the discretion to shorten this liability period. This means that in some cases, Bojangles may choose to release the transferor from their obligations sooner than the standard two-year period.

Additionally, the Prior Franchisee agrees to remain liable for three years from the effective date of transfer for obligations set forth in Paragraphs VIII., IX, and X of the 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.