For how long does the transferor remain liable to Bojangles after the effective date of transfer?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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;
Source: Item 23 — RECEIPTS (FDD pages 82–573)
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. This liability pertains to all affirmative obligations, covenants, and agreements contained within the franchise agreement. However, there are exceptions to this two-year period.
If the transferor retains a purchase money interest in the transferred business, the liability extends beyond two years, lasting until the interest is extinguished. Additionally, Bojangles retains the discretion to shorten this liability period.
This condition is part of a set of requirements that Bojangles may impose for approving a transfer. These requirements also include satisfying all outstanding monetary obligations to third parties and to Bojangles, ensuring the franchisee is not in default of any agreement, and securing a general release of claims against Bojangles. The transferee must also enter into a written assignment assuming all obligations under the Franchise Agreement.