Under what circumstances does Bojangles have the option to purchase a franchisee's business assets under the Development Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| o. Franchisor’s option to | Sections VIII.E. | |
| purchase franchisee’s | ||
| business o. Franchisor’s option to | ||
| purchase franchisee’s | (except if | completed in designated period, we have option to |
| business | Development | purchase. Within 60 days of a non-curable default or |
| Agreement is for | 90 days of an uncured curable default under the | |
| Bojangles Express | Development Agreement, we may under certain | |
| Restaurants) and | circumstances purchase the assets of all Restaurants you | |
| IX.D. and E. | have opened under the Development Agreement. |
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, Bojangles has the option to purchase a franchisee's business assets under specific conditions outlined in the Development Agreement. If an approved transfer of interest following the death or mental incapacity of the franchisee is not completed within a designated period, Bojangles retains the option to purchase the business.
Additionally, Bojangles may exercise its option to purchase the assets of all Restaurants opened under the Development Agreement if there is a non-curable default lasting 60 days or an uncured curable default lasting 90 days. This clause does not apply if the Development Agreement is specifically for Bojangles Express Restaurants.
These stipulations are important for prospective franchisees to consider, as they define the circumstances under which Bojangles can take control of the developed restaurants. Understanding these conditions is crucial for assessing the risks and potential outcomes of entering into a Development Agreement with Bojangles.