Does the Bojangles Advertising Expense Sharing Agreement require all franchisees within a DMA to participate in DMA Advertising?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
DMA Advertising shall be initiated or continued only if approved by 51% of the DMA Membership voting upon the question; however, other Members in the DMA may have different provisions that permit them not to participate in the DMA except upon a greater vote.
In lieu of membership in the DMA, Franchisor may require Express Units to pay up to two percent (2%) of gross sales to Franchisor to offset, in part, spending of Franchisor in the DMA, without admitting Express Units as voting members of the DMA.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Advertising Expense Sharing Agreement does not mandate that all franchisees within a Designated Market Area (DMA) participate in DMA advertising. The decision to initiate or continue DMA advertising requires approval by 51% of the DMA membership voting on the question. However, some members may have different provisions that allow them to opt out of participation, even with a majority vote.
Bojangles Express units have specific rules regarding DMA membership and voting rights. If a DMA contains only Express Units, each unit has full voting rights. However, if a DMA contains both Express Units and Non-Express Units, Bojangles may change the DMA membership nature of the Express Units. They can require contributions up to 2% of gross sales, granting Express Unit Members one-half vote for each Express Unit within the DMA.
Franchisees should note that the contributions required to be paid by DMA members cannot be increased over the 2% of gross sales limit without unanimous consent from all members. Additionally, some franchisees may operate under different agreements that provide for lesser co-operative contribution rates or contain other varying terms. Franchisees are bound to the terms of their specific agreement, acknowledging that other members' performance may be governed by different agreement forms.
Bojangles retains the right to discontinue cooperative advertising programs within a DMA, returning unexpended funds to the contributors. Any DMA that is not an Eligible DMA will not carry out any functions, and franchisees will not have duties or obligations until their Restaurants are transferred to an Eligible DMA. Each franchisee determines their own prices independently and must comply with all applicable laws and regulations.