Does Bojangles unreasonably withhold consent to the transfer of a franchise governed by Minnesota law?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
3. Sections II, XIV and XV of the Individual Franchise Agreement are amended by adding the following sentence to the end of each Section:
With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5, which requires, except in certain cases, that (1) a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of franchise agreements; and (2) that consent to the transfer of a franchise will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Individual Franchise Agreement for Minnesota franchisees includes a stipulation regarding the transfer of a franchise. Specifically, with respect to franchises governed by Minnesota law, Bojangles will comply with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5.
This statute generally requires that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of franchise agreements. Importantly, it also mandates that consent to the transfer of a franchise will not be unreasonably withheld. This provision is designed to protect the franchisee's ability to sell their business, ensuring that Bojangles cannot arbitrarily prevent a transfer.
For a prospective Bojangles franchisee in Minnesota, this addendum offers a degree of protection. It means that if they decide to sell their franchise, Bojangles must have a legitimate, justifiable reason to deny the transfer to a potential buyer. This aligns with franchise laws in many states that aim to balance the franchisor's need to maintain brand standards with the franchisee's right to realize the value of their investment.