Does Bojangles waiving its rights to a transfer of interest in the franchise mean it waives any claims against the transferring party?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's consent to a transfer of any interest in Franchisee, rights to operate the Restaurant, interest in this Agreement or any license or franchise rights granted hereunder shall not constitute a waiver of any claims it may have against the transferring party, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms of this Agreement by the transferee.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles's consent to a transfer of any interest in the franchisee, rights to operate the restaurant, interest in the agreement, or any license or franchise rights granted does not constitute a waiver of any claims it may have against the transferring party. Furthermore, it does not waive Bojangles's right to demand exact compliance with any of the terms of the agreement by the transferee.
This means that even if Bojangles approves a transfer of the franchise to a new owner, it retains all rights to pursue any existing claims against the original franchisee (the transferring party). This provision protects Bojangles from losing its legal rights simply by approving a transfer.
For a prospective franchisee, this clause highlights the importance of fulfilling all obligations under the Franchise Agreement. If a franchisee is considering selling their franchise, they should be aware that Bojangles can still pursue them for any outstanding issues, even after the transfer is complete. The new franchisee is also expected to comply with all terms of the agreement, and Bojangles's approval of the transfer does not excuse them from doing so.