Can Bojangles prevent a franchise transfer if the proposed transferee is a competitor of Bojangles?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Without in any way limiting the generality of Recipient's obligations under this Agreement, Recipient acknowledges and agrees that in no event will Recipient disclose any of the Confidential Information to any of Franchisor's competitors.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bojangles places restrictions on the disclosure and use of confidential information. Specifically, franchisees are prohibited from disclosing any confidential information to Bojangles' competitors. This suggests that Bojangles prioritizes protecting its proprietary information and business methods from being accessed by rival companies.
While the FDD excerpt explicitly restricts the disclosure of confidential information to competitors, it does not directly address whether Bojangles can prevent a franchise transfer to a competitor. However, the broad restriction on sharing confidential information implies that Bojangles would likely scrutinize any potential transfer to a competitor, as such a transfer could create a high risk of confidential information being compromised.
Therefore, while not explicitly stated, it is highly probable that Bojangles would consider a proposed transferee's status as a competitor when evaluating a franchise transfer request. A prospective franchisee should seek clarification from Bojangles regarding their specific policies and procedures related to franchise transfers to competitors to fully understand the potential limitations and requirements.