What is the required legend that must be conspicuously endorsed on each stock certificate or evidence of ownership for a Bojangles Developer entity?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
ownership if Developer is a limited liability company, shall have the following legend conspicuously endorsed upon its face:
The shares represented by this certificate, or other evidence of ownership if Developer is a limited liability company, are subject to the terms of an agreement dated [date] between [name of issuing corporation or limited liability company] and BOJANGLES OPCO, LLC, which, inter alia, restricts transfer, restricts activities in which [name of issuing corporation] may engage, and imposes restrictions on shareholders or members.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, each stock certificate or evidence of ownership for a Bojangles Developer entity must have a specific legend conspicuously endorsed on its face. This requirement ensures that all potential owners are aware of the restrictions and obligations tied to the ownership.
The required legend states that the shares or ownership evidence are subject to the terms of an agreement between the issuing corporation or limited liability company and BOJANGLES OPCO, LLC, dated as of a certain date. This agreement includes restrictions on transfer, limitations on the activities the issuing corporation can engage in, and restrictions on shareholders or members.
For a prospective Bojangles franchisee, this means that any transfer of ownership in the Developer entity is subject to Bojangles's approval, and the business activities of the Developer are limited to operating Bojangles restaurants. This provision is designed to maintain control over who becomes involved in the franchise and to ensure that the focus remains on the Bojangles business. The franchisee should carefully review the agreement referenced in the legend to fully understand these restrictions and obligations.