After the Bojangles agreement expires, what is the geographic scope of the restriction preventing a franchisee from operating a competing fast food restaurant to Bojangles?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) Any fast food restaurant business which is located (a) within ten (10) miles from the Restaurant or any Bojangles restaurant that 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:
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, following the expiration or termination of the franchise agreement, a franchisee is restricted from engaging in a competing fast food restaurant business for a period of two years. This restriction applies to any fast food restaurant located within ten miles of the former Bojangles restaurant or any other Bojangles location that is open, planned for construction, or under construction.
In addition to the ten-mile radius, the restriction also extends to the designated market area in which the former Bojangles restaurant was situated. This means that even if a competing fast food restaurant is located more than ten miles away, it could still be in violation of the agreement if it falls within the same designated market area as the former Bojangles.
These post-term covenants are typical in franchising to protect the brand and prevent franchisees from immediately leveraging the franchisor's confidential information and customer base to start a competing business. A prospective Bojangles franchisee should carefully consider these restrictions and how they might impact their future business opportunities after the franchise agreement expires or is terminated.