Does Bojangles have an option to purchase the franchise if the franchisee wants to transfer it?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Franchisor shall have the option to purchase any interest in the Restaurant or this Agreement as follows:
- (1) Any party holding any direct or indirect interest in the rights to operate the Restaurant, interest in this Agreement or in franchise rights or license rights granted hereunder who desires to accept any bona fide offer from a party other than Franchisor to purchase such interest, if a transfer of that interest alone or together with other previous, simultaneous or proposed transfers would have the effect of transferring a controlling interest in the rights to operate the Restaurant, interest in this Agreement, or franchise rights or license rights granted hereunder, shall provide Franchisor with all of the terms of the proposed transfer in writing at least sixty (60) days prior to the proposed date of transfer.
Franchisor shall have the right and option, exercisable within thirty (30) days after receipt of all documentation necessary, in Franchisor's sole but reasonable opinion, to evaluate the terms of the proposed transfer, to send written notice to the seller that Franchisor intends to purchase the seller's interest on the same terms and conditions offered by the third party, net of any finders or brokers fees which any third party would be obligated to pay.
In the event that Franchisor elects to purchase the seller's interest, closing on such purchase must occur within thirty (30) days from the date of notice to the seller of the election to purchase by Franchisor.
If Franchisor does not exercise its option to purchase, Franchisee or shareholders or members of Franchisee may proceed to consummate a transfer to a third party if they have complied with the conditions of this Paragraph XV.
If Franchisor did not exercise its option to purchase, any material change in the terms of the third party's offer prior to closing shall constitute a new offer subject to the same option to purchase by Franchisor as in the case of an initial offer.
Failure of Franchisor to exercise the option afforded by this Paragraph XV.D. shall not constitute a waiver of any other provision of this Agreement, including all of the requirements of this Paragraph XV. with respect to a proposed transfer.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, Bojangles does have the option to purchase a franchise if the franchisee desires to transfer it. If a franchisee receives a legitimate offer from a third party to purchase their interest in the restaurant, franchise rights, or the agreement itself, and the transfer would result in a change of controlling interest, the franchisee must provide Bojangles with the terms of the proposed transfer in writing at least 60 days before the intended transfer date.
Bojangles then has the option, exercisable within 30 days of receiving all necessary documentation, to notify the seller in writing of its intent to purchase the interest on the same terms and conditions offered by the third party, excluding any finder's or broker's fees that the third party would have been obligated to pay. If Bojangles chooses to exercise this option, the closing on the purchase must occur within 30 days from the date of notice to the seller.
If Bojangles declines to exercise its option to purchase the franchise, the franchisee is then permitted to proceed with the transfer to the third party, provided they have complied with all conditions outlined in Paragraph XV of the franchise agreement. However, any material changes to the terms of the third party's offer before closing will constitute a new offer, which is again subject to Bojangles' option to purchase. The failure of Bojangles to exercise its option to purchase does not waive any other provisions of the agreement related to the proposed transfer.