conditional

Under what conditions is the Franchisee's assignment of rights to the lease to Bojangles Opco, LLC effective?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Franchisee hereby assigns to Franchisor, with Landlord's irrevocable and unconditional consent, all of Franchisee's rights, title and interests to and under the Lease upon any termination, expiration, or non-renewal of the Franchise Agreement, but no such assignment shall be effective unless: (a) the Franchise Agreement is terminated, not renewed, or expires without renewal or Franchisor has exercised its option to purchase the Restaurant under the Franchise Agreement, as applicable; and (b) Franchisor notifies the Franchisee and Landlord in writing that Franchisor assumes Franchisee's obligations under the Lease.

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, the franchisee's assignment of rights, title, and interests in the lease to Bojangles Opco, LLC is contingent upon specific conditions. This assignment, which requires the landlord's irrevocable and unconditional consent, becomes effective only upon the termination, expiration, or non-renewal of the Franchise Agreement. It also applies if Bojangles exercises its option to purchase the restaurant as outlined in the Franchise Agreement.

Furthermore, for the assignment to be valid, Bojangles must provide written notification to both the franchisee and the landlord, explicitly stating that Bojangles assumes the franchisee's obligations under the lease. This dual condition ensures that all parties are informed and that Bojangles formally commits to the responsibilities associated with the lease.

This clause protects Bojangles by allowing them to take over the lease if a franchisee exits the system, ensuring continuity of operations at the location. For a prospective franchisee, this means understanding the circumstances under which Bojangles can assume the lease and the implications for their business if the franchise agreement ends.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.