After the Bojangles agreement expires, for how long is the developer restricted from owning a competing restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) Any fast food restaurant business which is located (a) within the Assigned Area; or (b) within ten (10) miles from the site of any Restaurant developed hereunder or any Bojangles restaurant that is open, planned for construction, or under construction.
(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, Developer 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; and (ii) is located within ten (10) miles from the site of any Restaurant developed hereunder or any Bojangles restaurant that is open, planned for construction or under construction as of the termination or expiration of this Agreement; or
(b) Any fast food restaurant business which is located (i) within ten (10) miles from the site of any Restaurant developed hereunder or any Bojangles restaurant that is open,
planned for construction, or under construction as of the termination or expiration of this Agreement, or (ii) within a designated market area within which any of the Assigned Area is situated.
- B.
Paragraph X.A. shall not apply to ownership by Developer of less than two percent (2%) beneficial interest in the outstanding equity securities of any corporation which is registered under the Securities Exchange Act of 1934.
- C.
The parties agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a developer is restricted from engaging in competing restaurant businesses for a period of two years following the expiration or termination of the Development Agreement. This restriction applies regardless of the reason for the termination. Specifically, the developer and its shareholders or members are prohibited from owning, maintaining, advising, helping, investing in, making loans to, being employed by, being the landlord of, engaging in, or having any interest in competing businesses.
The restrictions apply to any restaurant business that competes with Bojangles or sells similar items like fried chicken, biscuits, or biscuit sandwiches, if that restaurant is located within ten miles of any Bojangles restaurant developed under the agreement or any Bojangles restaurant that is open, planned for construction, or under construction. The restrictions also extend to any fast food restaurant business located within ten miles of a Bojangles restaurant or within a designated market area where the assigned area is situated.
However, there is an exception: the restriction does not apply if the developer owns less than two percent beneficial interest in the outstanding equity securities of any corporation registered under the Securities Exchange Act of 1934. Bojangles also states that each covenant within the agreement is independent of any other covenant or provision.
This non-compete clause ensures that for two years after the agreement ends, the developer cannot leverage their knowledge and experience gained from Bojangles to directly compete against the franchise within a specific geographic area. Prospective developers should carefully consider these limitations and how they might impact their future business ventures after their agreement with Bojangles concludes.