According to the Bojangles franchise agreement, what constitutes an 'Eligible DMA'?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- h. "Eligible DMA" is a DMA with two or more members (a DMA which is not an Eligible DMA upon the execution of this Agreement due to its having less than two members shall become an Eligible DMA at such later time as it may have two or more members).
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, an 'Eligible DMA' is defined as a Designated Market Area (DMA) that has two or more members. The document clarifies that a DMA with fewer than two members upon the execution of the agreement is not considered an Eligible DMA initially. However, it can become an Eligible DMA at a later time when it reaches the threshold of having two or more members.
This definition is important for prospective Bojangles franchisees because it determines their participation and obligations within the DMA. Franchisees in Noneligible DMAs do not have any duties or obligations until their restaurants are transferred to an Eligible DMA. This also affects the DMA's ability to carry out its functions, such as cooperative advertising programs, which are contingent on the DMA being 'Eligible'.
For a potential Bojangles franchisee, understanding the DMA status is crucial for budgeting and planning. If a franchisee is located in a DMA with only one member initially, they should anticipate that certain DMA-related activities and obligations will not be in effect until another member joins. This could impact their marketing strategies and overall operational involvement within the local market. Franchisees should also monitor the membership status of their DMA to stay informed about when it may transition to 'Eligible' status and what new responsibilities that entails.