After the Bojangles agreement expires, for how long is the developer restricted from owning a competing restaurant within 10 miles of a former 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; or
- (b) Any fast food restaurant business which is located (i) 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, or (ii) within the designated market area within which the Restaurant is situated.
- B. Paragraph XVI.A. shall not apply to ownership by Franchisee 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.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, a developer is restricted from owning a competing restaurant within a 10-mile radius of a former Bojangles location for a period of two years after the expiration or termination of the Development Agreement. Specifically, for a period of two years, the developer cannot own, maintain, advise, help, invest in, make loans to, be employed by, be the landlord of, engage in, or have any interest in any restaurant that competes with Bojangles or sells similar menu items like fried chicken and biscuits. This restriction applies to restaurants located within ten miles of any Bojangles restaurant that was open, planned for construction, or under construction at the time of termination or expiration of the agreement.
This non-compete clause is in place regardless of the reason for the termination or expiration of the agreement, unless Bojangles provides written approval otherwise. The restriction applies not only to the developer but also to its shareholders or members, preventing them from circumventing the agreement through other entities. However, the restriction does not apply if the developer owns less than 2% of the equity securities in a publicly registered corporation.
This type of non-compete agreement is common in franchising to protect the brand and market share of the franchisor. It prevents former franchisees or developers from using the knowledge and experience gained during their time with the franchise to directly compete against the system shortly after their departure. Prospective Bojangles developers should carefully consider the implications of this restriction, especially if they have plans to operate other restaurant businesses in the future.