Does the Bojangles Advertising Expense Sharing Agreement specify the consequences of a DMA Member failing to meet their advertising expense obligations?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
No Initial Franchisee shall be entitled to make any transfer of Restaurants from one DMA to another hereunder unless such Initial Franchisee shall be current in its obligations to make DMA contributions at the time of such transfer.
INDEMNIFICATION: Each of the Members of each DMA do hereby agree to indemnify and hold harmless Franchisor in respect to all losses, claims, or liabilities that may result from actions of such Member's DMA, including without limitation, the nonpayment of media sources (except no indemnity is intended as to any contributions which may be due from Franchisor as a DMA Member).
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
Based on the 2025 Bojangles Franchise Disclosure Document, the consequences for a DMA (Designated Market Area) member failing to meet their advertising expense obligations are not explicitly detailed within the provided excerpts. However, the document does state that Initial Franchisees must be current on their DMA contributions to transfer restaurants between DMAs. Additionally, each DMA member agrees to indemnify and hold harmless Bojangles from losses or liabilities resulting from the DMA's actions, potentially including the nonpayment of media sources, although this excludes contributions due from Bojangles itself as a DMA member.
While the agreement outlines the process for DMA advertising, contributions, and the roles within the DMA, it lacks specific clauses that define the penalties or courses of action Bojangles or the DMA may take against a member who defaults on their advertising expense obligations. The agreement emphasizes the cooperative nature of advertising efforts and the requirement for members to contribute a percentage of gross sales, but it does not elaborate on enforcement mechanisms for non-compliance.
Given this lack of explicit detail, prospective Bojangles franchisees should seek clarification from Bojangles regarding the specific repercussions of failing to meet advertising expense obligations within a DMA. Understanding these consequences is crucial for assessing the financial risks and responsibilities associated with participating in cooperative advertising programs as a Bojangles franchisee. Franchisees should inquire about late payment penalties, potential legal actions, or other remedies available to Bojangles or the DMA in cases of default.