After the Bojangles agreement expires, what is the geographic restriction on a franchisee owning a competing fast food restaurant to a Bojangles location?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
is open, planned for construction, or under construction, or (b) within the designated market area within which the Restaurant is situated.
- (2) During the continuing uninterrupted period commencing upon the expiration or termination of this Agreement, regardless of the cause for termination, and continuing for two (2) years thereafter, except as otherwise approved in writing by Franchisor, Franchisee and its shareholders or members shall not, either directly or indirectly, for themselves, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or limited liability company, own, maintain, advise, help, invest in, make loans to, be employed by, be the landlord of, engage in, or have any interest in:
- (a) Any restaurant business which: (i) competes with any Bojangles restaurant or which sells fried chicken, biscuits and/or biscuit sandwiches, or other items which are featured menu items at Bojangles restaurants as of the termination or expiration of this Agreement, and (ii) is located within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction or under construction as of the termination or expiration of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, for two years after the franchise agreement expires or terminates, a franchisee faces geographic restrictions on involvement with competing fast-food restaurants. Specifically, the franchisee cannot own, maintain, advise, help, invest in, make loans to, be employed by, be the landlord of, engage in, or have any interest in a competing fast food restaurant business.
This restriction applies if the competing restaurant is located within ten miles of the former Bojangles restaurant or any other Bojangles location that is open, planned for construction, or under construction. The restriction also applies if the competing restaurant is within the designated market area where the Bojangles restaurant was situated. This means a former franchisee is restricted from opening or being involved with a competing fast food business within a potentially large area defined by either a specific radius or the entire designated market area.
These post-term covenants aim to protect Bojangles' market share and brand recognition by preventing former franchisees from using their knowledge of the Bojangles system to directly compete with the franchise shortly after their agreement ends. However, the restrictions do not apply if the franchisee owns less than two percent beneficial interest in the equity securities of a corporation registered under the Securities Exchange Act of 1934. Franchisees may also seek written approval from Bojangles to waive these restrictions.