After the Bojangles agreement expires or terminates, for how long is the franchisee restricted from owning or being involved with a competing restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees face certain restrictions regarding involvement with competing businesses after the termination or expiration of their franchise agreement. Specifically, for a period of two years following the end of the franchise agreement, franchisees (including their shareholders or members) are prohibited from owning, maintaining, advising, helping, investing in, making loans to, being employed by, being a landlord of, engaging in, or having any interest in a competing restaurant business without Bojangles's written approval.
This non-compete clause applies to any restaurant that competes with Bojangles or sells similar items like fried chicken, biscuits, or biscuit sandwiches within a ten-mile radius of the former Bojangles location or any other Bojangles restaurant that is open, planned, or under construction. The restriction also extends to any fast-food restaurant business within the same ten-mile radius or within the designated market area of the former Bojangles restaurant.
However, the non-compete clause does not apply if the franchisee owns less than two percent of the equity securities in a corporation registered under the Securities Exchange Act of 1934. This exception allows franchisees to hold minor investments in publicly traded companies that may operate competing restaurants without violating the agreement. These restrictions are designed to protect Bojangles's market share and proprietary business model by preventing former franchisees from directly competing using the knowledge and resources gained during their time with the franchise.