Does the Bojangles Advertising Expense Sharing Agreement outline a process for terminating the agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
e time of such transfer.
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- NONELIGIBLE DMAs: Any DMA which is not an Eligible DMA under this Agreement will not carry out any of the functions called for herein until such time as it may become an Eligible DMA, and no Franchisee shall have any duties or obligations hereunder in respect to any Restaurants owned by him in such DMA unless and until such Restaurants be transferred under the terms hereunder to an Eligible DMA of which such Franchisee is a member.
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- FRANCHISOR'S RIGHT TO DISCONTINUE DMA ADVERTISING: Notwithstanding the provisions of this Agreement, Franchisor may in its discretion discontinue the operation of cooperative advertising programs within the DMA and require the return of all funds to each respective contributor to the extent these funds have not been expended or obligations created.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the franchisor has the right to discontinue DMA (Designated Market Area) advertising. Bojangles may discontinue the operation of cooperative advertising programs within the DMA and require the return of all funds to each respective contributor to the extent these funds have not been expended or obligations created. This discontinuance can be implemented by Bojangles with written notice to each member. The chairman of the DMA is then responsible for returning all funds to the DMA members, except for those funds necessary to pay obligations incurred for advertising within the DMA.
This clause does not limit Bojangles' rights under the terms of any franchise agreement or other agreement pertaining to any franchisee who is a member under the Advertising Expense Sharing Agreement. This means that Bojangles retains all rights and powers specified in the franchise agreement, irrespective of the advertising agreement.
For a prospective franchisee, this means that while they are obligated to contribute to DMA advertising, Bojangles has the power to discontinue the program and return unspent funds. However, the specific conditions or reasons that might trigger Bojangles to discontinue the DMA advertising are not detailed, so it would be wise for a prospective franchisee to seek clarification on what circumstances might lead to the termination of the advertising program.