What standards must a transferee meet to the satisfaction of Bojangles to be approved?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (d) The transferee shall enter into a written assignment, under seal and in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under this Agreement; and, if the obligations of Franchisee were guaranteed by the transferor, the transferee shall guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
- (e) The transferee shall demonstrate to Franchisor's satisfaction that the transferee meets Franchisor's educational, managerial, and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the Franchised Business herein (as may be evidenced by prior related business experience or otherwise); and has adequate financial resources and capital to operate the Franchised Business;
- (f) At Franchisor's option, the transferee shall execute (and/or, upon Franchisor's request, shall cause all interested parties to execute), for a term ending on the expiration date of this Agreement, the then-current standard form of franchise agreement being offered to new System franchisees and other ancillary agreements, including a guarantee of such agreement executed by all shareholders of the transferee, as Franchisor may require for the Franchised Business, which agreements shall supersede this Agreement in all respects and the terms of which agreements may differ from the terms of this Agreement, including, without limitation, a higher percentage royalty rate and advertising contribution; provided, however, that the transferee shall not be required to pay an initial franchise fee;
- (g) At Franchisor's sole discretion, the transferee, at its expense, shall upgrade the Restaurant to conform to the then-current standards and specifications of System restaurants, and shall complete the upgrading and other requirements within the time specified by Franchisor;
- (h) Franchisee shall remain liable for all of its obligations to Franchisor in connection with the Franchised Business prior to the effective date of the transfer, and shall execute any and all instruments reasonably requested by Franchisor to evidence such liability;
- (i) At the transferee's expense, transferee's Managing Owner, Designated Operator, and managers, shal
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a transferee must meet several standards to gain approval from Bojangles. The transferee must demonstrate that they meet Bojangles's educational, managerial, and business standards. They also need to possess a good moral character, business reputation, and credit rating.
Furthermore, the transferee must show they have the aptitude and ability to conduct the franchised business, potentially evidenced by prior related business experience. Adequate financial resources and capital to operate the franchised business are also a must.
Additionally, Bojangles may require the transferee to execute the then-current standard form of franchise agreement, which could include terms that differ from the original agreement, such as higher royalty rates and advertising contributions. The transferee may also be required to upgrade the restaurant to meet the current system standards at their own expense and complete any required training and certification programs for franchisees, including their Managing Owner, Designated Operator, and managers. Finally, the franchisee must pay a transfer fee of $5,000 per Restaurant to cover Bojangles's costs in reviewing the transfer application.