Can Bojangles transfer its rights or obligations under the agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Franchisor shall have the option to purchase any interest in the Restaurant or this Agreement as follows:
- (1) Developer and shareholders or members of Developer who desire to accept a bona fide offer from a third party to purchase an interest in Developer or in this Agreement shall provide Franchisor with all of the terms of the proposed transfer in writing at least sixty (60) days prior to the proposed date of transfer.
Franchisor shall have the right and option, exercisable within thirty (30) days after receipt of such written notification, to send written notice to the seller that Franchisor intends to purchase the seller's interest on the same terms and conditions offered by the third party, net of any finders or brokers fees which any third party would be obligated to pay.
In the event that Franchisor elects to purchase the seller's interest, closing on such purchase must occur within thirty (30) days from the date of notice to the seller of the election to purchase by
- C. **In the event that a quick-service food competitor of Franchisor acquires a controlling interest in Developer without Franchisor's prior written consent, Franchisor shall have the right at its option to terminate this Agreement and all rights granted hereunder without affording Developer any opportunity to cure the default upon ninety (90) days written notice to Developer.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bojangles has specific rights regarding the transfer of interests in the franchise. If a franchisee (referred to as "Developer" in the Development Agreement) receives a legitimate offer from a third party to purchase an interest in the franchise or the Development Agreement itself, the franchisee must provide Bojangles with the terms of the proposed transfer in writing at least 60 days before the intended transfer date.
Bojangles then has the option, within 30 days of receiving this written notification, to notify the seller (the franchisee) that it intends to purchase the seller's interest under the same terms and conditions offered by the third party, excluding any finder's or broker's fees that the third party would have been obligated to pay. If Bojangles decides to exercise this option, the closing on the purchase must occur within 30 days from the date Bojangles notifies the seller of its election to purchase.
Additionally, if a quick-service food competitor acquires a controlling interest in the franchisee without Bojangles' prior written consent, Bojangles has the right to terminate the Development Agreement and all rights granted under it. This termination can occur without providing the franchisee an opportunity to correct the situation, but Bojangles must give the franchisee 90 days written notice. These stipulations ensure Bojangles maintains control over who becomes a franchisee and prevents competitors from gaining control without their approval.