Does Bojangles have the right to transfer its obligations under the franchise agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Franchisor shall have the right to transfer or assign all or any part of its rights or obligations herein to any person or legal entity.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, Bojangles has the right to transfer or assign its rights and obligations under the franchise agreement to another party. This means that Bojangles, as the franchisor, can transfer its responsibilities and entitlements under the agreement to another person or legal entity.
For a prospective franchisee, this clause indicates that the relationship they establish with Bojangles could be transferred to a different entity. This new entity would then assume the franchisor's role, potentially impacting the franchisee's business operations and support systems. While the FDD states that Bojangles has the right to transfer these obligations, it does not specify under what conditions or with what notice such a transfer would occur.
Franchise agreements often include such clauses to allow the franchisor flexibility in corporate restructuring, mergers, or acquisitions. However, it's important for a franchisee to understand that the entity they initially contracted with may not be the entity they deal with throughout the term of the agreement. Therefore, a prospective franchisee should seek clarification from Bojangles regarding the circumstances under which such a transfer might occur and what protections, if any, the franchisee would have in such a situation.