For company-operated Bojangles restaurants, how does Bojangles determine its contribution to the Marketing Development Fund?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
We will, for each of our company-operated Restaurants, make contributions to the Fund equal to the contributions required of comparable franchised Restaurants within the Bojangles System so that our average contribution for each company-operated Restaurant will be equal to the average contribution per franchised Restaurant.
This average per Restaurant contribution for franchised Restaurants will be calculated by dividing the total contributions of franchisees to the Fund by the total number of franchised Restaurants.
Our total contribution to the Fund will equal this average per Restaurant contribution multiplied by our total number of company-operated Restaurants.
In addition, we may contribute promotional rebates we receive from suppliers to the Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the contribution of company-operated restaurants to the Marketing Development Fund is determined by matching the average contribution of franchised restaurants. Bojangles calculates the average contribution per franchised restaurant by dividing the total contributions of all franchisees by the total number of franchised restaurants. Then, Bojangles multiplies this average contribution by the total number of company-operated restaurants to determine its total contribution to the fund.
This system ensures that company-operated restaurants contribute to the fund at a rate equivalent to that of franchised restaurants, maintaining a fair and consistent approach to funding marketing initiatives. In addition to these contributions, Bojangles may also contribute promotional rebates received from suppliers to the Marketing Development Fund, further boosting the resources available for advertising and promotional activities.
For a prospective franchisee, this means that Bojangles' corporate restaurants are held to the same standard as franchised locations regarding contributions to the marketing fund. This arrangement aims to provide a level playing field and ensures that both company-operated and franchised restaurants are equally invested in the brand's marketing efforts. Understanding this contribution model can help franchisees better assess their financial obligations and the overall marketing strategy of the Bojangles system.