What must the transferee do regarding the Developer's obligations under the Bojangles agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
er than two (2) years, until the interest is extinguished) or for such shorter period as Franchisor may, in its sole discretion, determine;
- (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;
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a transferee must assume and agree in writing to fulfill all of the Developer's obligations under the Development Agreement. This agreement must be in a form satisfactory to Bojangles. If the Developer's obligations were guaranteed by the transferor, the transferee must also provide a written guarantee of these obligations in a form satisfactory to Bojangles.
In addition to assuming the Developer's obligations, the transferee must demonstrate that they meet Bojangles's standards for education, management, and business acumen. They must also possess good moral character, a solid business reputation, and a favorable credit rating. The transferee needs to show they have the aptitude and ability to conduct the business, potentially through prior experience, and have adequate financial resources to develop Bojangles restaurants.
Furthermore, Bojangles has the option to require the transferee to execute either the then-current standard form of development agreement or an agreement in the same form as the original Development Agreement. This agreement would be for a term ending on the original agreement's expiration date. Bojangles may also require all shareholders or members of the transferee to execute a guarantee of this agreement. The development schedule and assigned area in the new agreement must match the original Development Agreement, and the transferee may need to enter into other ancillary agreements as required by Bojangles.
Finally, the transferee's Managing Owner, Designated Operator, and managers must complete any training and certification programs that Bojangles has in effect for developers. The transferee is responsible for covering the expenses associated with this training. Bojangles also requires the transferee to acquire all of the Restaurants opened under the Development Agreement and all of the Developer's rights granted under all of its Franchise Agreements with Bojangles.