Under what circumstances is the Bojangles transfer fee payable?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Comments |
|---|---|---|---|
| Transfer | $5,000 per Restaurant | Payable prior to consummation of transfer. | We have the right to approve all transfers. Payable only if a transfer, alone or together with other previous, simultaneous, or proposed transfers, would have the effect of transferring a controlling interest in you, the Restaurant or in any Development or Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 21–24)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a transfer fee of $5,000 per restaurant is payable under specific conditions related to the transfer of ownership. This fee is due prior to the completion of the transfer. However, it is not a standard fee applied to every transfer.
The transfer fee is only payable if the transfer, either alone or when combined with other previous, simultaneous, or proposed transfers, results in the transfer of a controlling interest. This controlling interest can pertain to the franchisee themselves, the restaurant, or any Development or Franchise Agreement. Bojangles retains the right to approve all transfers, ensuring that any changes in ownership or control meet their standards and requirements.
This condition is important for prospective franchisees to understand, as it clarifies that minor ownership changes or partial transfers may not trigger the fee. The fee is specifically designed to address situations where a significant shift in control occurs. Franchisees should carefully consider the implications of any potential transfer and whether it would meet the criteria for triggering the $5,000 fee. It is advisable to consult with Bojangles and review the specific terms of the Franchise Agreement to fully understand the requirements and potential costs associated with transferring ownership or control.