Is the Bojangles Advertising Expense Sharing Agreement applicable to future franchise owners?

According to Bojangles's 2025 Franchise Disclosure Document, the Advertising Expense Sharing Agreement applies to both current and future franchise owners. The agreement is made between Bojangles Opco, LLC, current franchise owners, and "all future franchise owners who may hereafter engage in the operation of Bojangles Restaurants and hereafter adopt this Agreement." This indicates that new franchisees are intended to be part of the cooperative advertising efforts.

The agreement outlines that Bojangles and its franchisees recognize the mutual benefit of cooperative advertising within specific television designated market areas (DMAs). This collaboration aims to enhance the exposure of their products and business to the public, potentially leading to increased sales and profitability for Bojangles restaurants. The agreement establishes a structure for these cooperative advertising efforts.

Franchisees should note that the contributions required within a DMA cannot increase beyond two percent of gross sales without unanimous consent from all members in that DMA. The amounts contributed by a member for DMA advertising, if used for local advertising, will be considered an allowable local advertising expense. This expense is then prorated among the DMA members based on their contributions, which counts toward fulfilling the franchisee's local advertising requirements as specified in their Bojangles franchise agreement. Franchisees should also be aware that some franchisees may operate under different agreements with varying contribution rates or terms, and that each franchisee independently determines their own pricing.