Under what condition can Bojangles terminate the agreement if a transfer occurs without consent?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(9) [For Bojangles Express Restaurants, add the following: "If Developer or any individual, partnership, corporation, limited liability company or other legal entity which directly or indirectly owns an interest in Developer shall, without the prior written consent of Developer, make any transfer that alone or together with other previous, simultaneous or proposed transfers, would have the effect of transferring a controlling interest in Developer to an entity or parent, subsidiary or affiliate thereof which is a competitor of Franchisor."]
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, for Bojangles Express Restaurants, if a transfer occurs without the franchisor's prior written consent, Bojangles can terminate the agreement. This applies if the transfer, alone or with previous or proposed transfers, results in a controlling interest in the developer being transferred to an entity that is a competitor of Bojangles.
This condition is specific to Bojangles Express Restaurants and aims to prevent a competitor from gaining control over a Bojangles franchise through unauthorized transfers. The clause protects Bojangles's market position and proprietary information by ensuring that its franchisees are not controlled by rival quick-service food businesses.
For a prospective franchisee, this means that any transfer of ownership or controlling interest in their Bojangles Express Restaurant must be approved by Bojangles. Failure to obtain this approval, especially if the transfer involves a competitor, can lead to the termination of the franchise agreement. This highlights the importance of adhering to the transfer requirements outlined in the franchise agreement to avoid potential termination and loss of the franchise.