Under what circumstances can Bojangles refuse a transfer of ownership of a Bojangles franchise?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) A provision which permits a franchisor to refuse to permit a transfer of ownership of a franchise, except for good cause.
This subdivision does not prevent a franchisor from exercising a right of first refusal to purchase the franchise.
Good cause shall include, but is not limited to:
- (i) the failure of the proposed transferee to meet the franchisor's then current reasonable qualifications or standards.
- (ii) the fact that the proposed transferee is a competitor of the franchisor or subfranchisor.
- (iii) the unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.
- (iv) the failure of the franchisee or proposed transferee to pay any sums owing to the franchisor or to cure any default in the franchise agreement existing at the time of the proposed transfer.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles has the right to refuse a transfer of ownership of a franchise for good cause. This does not prevent Bojangles from exercising a right of first refusal to purchase the franchise.
Good cause includes several specific situations. Bojangles can refuse a transfer if the proposed transferee does not meet the then-current reasonable qualifications or standards that Bojangles has in place. A transfer can also be denied if the proposed transferee is a competitor of Bojangles.
Additionally, Bojangles can refuse the transfer if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations associated with being a Bojangles franchisee. Finally, Bojangles can block a transfer if either the current franchisee or the proposed transferee has not paid all sums owing to Bojangles or has failed to correct any existing default in the franchise agreement at the time of the proposed transfer.