Does Bojangles have a right of first refusal to acquire a franchisee's business or Development Agreement interest?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| n. Franchisor’s right of | We can match any offer to purchase interest in you or the Development Agreement. We can match any offer to purchase interest in you or the | |
| first refusal to acquire | Development Agreement. | |
| franchisee’s business |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 55–63)
What This Means (2025 FDD)
Yes, according to Bojangles' 2025 Franchise Disclosure Document, Bojangles retains the right of first refusal. Specifically, Bojangles can match any offer a franchisee receives to purchase their interest in the franchise or the Development Agreement. This provision allows Bojangles to maintain control over who enters their franchise system.
This right of first refusal means that if a franchisee wants to sell their Bojangles business or Development Agreement rights to a third party, they must first offer Bojangles the opportunity to purchase it on the same terms. Bojangles can then decide whether to match the offer and acquire the business themselves.
For a prospective franchisee, this clause could limit the pool of potential buyers and possibly the sale price, as any potential buyer knows that Bojangles has the option to step in and purchase the business instead. However, it also provides a degree of assurance that Bojangles is invested in the success and quality of its franchisees, as they have the ability to control who joins the system.