How are amounts contributed by a Bojangles member for DMA advertising treated in relation to their local advertising requirement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
All amounts contributed by a Member for DMA advertising hereunder shall, to the extent the same shall be expended for Local Advertising, be an allowable Local Advertising expense which shall be prorated among the DMA Members in proportion to their contributions, and each Member's pro-rated amount shall be taken into full account in determining such Member's fulfillment of its Local Advertising requirement as set forth in their respective Bojangles franchise agreements for those Restaurants operating in the DMA covered by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, contributions made by a member for DMA (Designated Market Area) advertising can be considered as an allowable local advertising expense. The amount spent on DMA advertising that qualifies as local advertising is prorated among the DMA members based on their contributions. This prorated amount is then factored into determining whether a member has fulfilled their local advertising obligations, as outlined in their Bojangles franchise agreement for restaurants operating within the DMA.
This means that if a Bojangles franchisee contributes to DMA advertising, a portion of that contribution can count towards the franchisee's required local advertising spend. The amount that counts towards the local advertising requirement is proportional to the franchisee's contribution to the DMA advertising fund. This provides a direct benefit to franchisees by allowing them to satisfy their local advertising requirements through participation in DMA advertising initiatives.
It is important for prospective Bojangles franchisees to understand how the DMA advertising contributions are calculated and how they are credited towards the local advertising requirement. Franchisees should also clarify what specific types of advertising expenses within the DMA qualify as 'Local Advertising' to ensure compliance with their franchise agreement. This can help franchisees effectively manage their advertising budget and ensure they meet all requirements set forth by Bojangles.