Under what circumstances must a Bojangles franchisee sell the assets of all Restaurants opened under the Development Agreement to the franchisor upon termination or non-renewal?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
er North Carolina law. |
Development Agreement
| Provision | Section in | Summary |
|---|---|---|
| Development Agreement | ||
| i. Franchisee’s | Section VIII.E.(3) and | You must not establish or operate any Restaurant for |
| obligations on | ||
| termination/non-renewal | ||
| (5) and F. | which a Franchise Agreement has not been signed by us and delivered to you prior to termination and we can establish and license others to establish Restaurants in the Assigned Area. Under certain circumstances, you must sell the assets of all of the Restaurants you have opened under the Development Agreement to us. | |
| j. Assignment of contrac | No restrictions on our right to assign. | |
| by franchisor | ||
| k. “Transfer” by | Includes transfer of interest (including mortgage or grant | |
| franchisee - definition k. “Transfer” by | ||
| franchisee - definition | of security interest) in a Restaurant, in Development Agreement or in any rights or obligations thereunder or in you. | |
| l. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 55–63)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, under certain conditions, a franchisee may be required to sell the assets of all Restaurants opened under the Development Agreement back to Bojangles. This obligation arises if a Franchise Agreement has not been signed and delivered by Bojangles to the franchisee prior to termination. This allows Bojangles to establish and license others to establish Restaurants in the Assigned Area.
Additionally, within 60 days of a non-curable default or 90 days of an uncured curable default under the Development Agreement, Bojangles has the option to purchase the assets of all Restaurants the franchisee has opened under the Development Agreement under certain circumstances.
These provisions are important for potential franchisees to consider, as they outline specific scenarios where Bojangles can repurchase the restaurants. Understanding these conditions is crucial for assessing the risks and potential outcomes of the franchise agreement, especially concerning termination or default scenarios.