When is the transfer fee due to Bojangles for a restaurant transfer?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Comments |
|---|---|---|---|
| Transfer | $5,000 per Restaurant | Payable prior to consummation of transfer. | We have the right to approve all transfers. Payable only if a transfer, alone or together with other previous, simultaneous, or proposed transfers, would have the effect of transferring a controlling interest in you, the Restaurant or in any Development or Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 21–24)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee must pay the transfer fee prior to the consummation of the transfer. The transfer fee is $5,000 per restaurant. Bojangles retains the right to approve all transfers.
This fee is payable only if the transfer, either alone or in conjunction with other previous, simultaneous, or proposed transfers, would result in the transfer of a controlling interest in the franchisee, the restaurant, or any Development or Franchise Agreement. This condition suggests that Bojangles is primarily concerned with transfers that significantly alter the ownership or control of the franchise operations.
It is common practice in the franchise industry to charge a transfer fee to cover the franchisor's administrative costs and to ensure that the new franchisee meets their standards. The fee compensates Bojangles for the time and resources spent reviewing and approving the transfer, as well as updating their records. The prospective franchisee should factor this $5,000 fee into their financial planning when considering the purchase of an existing Bojangles restaurant.