When transferring a Bojangles franchise, what written agreement must the transferee enter into?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 or members 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 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, when transferring a franchise, the transferee may be required to execute the then-current standard form of franchise agreement that Bojangles offers to new franchisees. This agreement would be for a term ending on the expiration date of the original agreement.
This new franchise agreement may also include other ancillary agreements, such as a guarantee executed by all shareholders or members of the transferee. The terms of the new agreements may differ from the original franchise agreement, potentially including a higher percentage royalty rate and advertising contribution. However, the transferee will not be required to pay an initial franchise fee.
In addition to the franchise agreement, the franchisee must demonstrate that they meet Bojangles' standards for education, management, and business, possess a good moral character, business reputation, and credit rating, have the aptitude and ability to conduct the franchised business, and have adequate financial resources and capital to operate the franchised business. The transferee may also be required to upgrade the restaurant to conform to the then-current standards and specifications of Bojangles restaurants, and complete any training and certification programs then in effect for franchisees.