What costs are specifically excluded from the local and regional media advertising expenditures for a Bojangles franchise?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall spend not less than three percent (3%) of the Gross Sales of the Restaurant on local and regional media advertising, in addition to any advertising contribution required under Paragraphs IV.C. and XII.E. hereof. Franchisee shall demonstrate on a quarterly basis, to the reasonable satisfaction of Franchisor, that Franchisee has made such expenditures. Such advertising shall include radio, television, magazine, newspaper, billboard campaigns, print, direct mail and other forms of advertising media and public relations activities but shall not include the costs of advertising production, production of other marketing materials, cost of food promotion, point of purchase materials, telephone book advertising, stationery, or restaurant indoor or outdoor site location signs.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of three percent of their restaurant's gross sales on local and regional media advertising. However, certain costs are explicitly excluded from counting towards this advertising expenditure requirement. These exclusions provide clarity on what types of expenses Bojangles franchisees can and cannot include when calculating their advertising spend.
Specifically, the costs of advertising production and the production of other marketing materials are excluded. This means that while franchisees must invest in advertising through various media channels, the expenses associated with creating the advertisements themselves (e.g., filming commercials, designing print ads) do not count towards the 3% requirement. Similarly, the cost of food promotions, which might include discounts or special offers, cannot be included in the advertising expenditure calculation.
Additionally, the FDD states that point-of-purchase materials, telephone book advertising, stationery, and restaurant indoor or outdoor site location signs are not considered part of the local and regional media advertising expenditures. This clarifies that the focus of the advertising spend should be on broader media campaigns rather than in-store promotional items or basic business necessities. Therefore, franchisees need to allocate their advertising budget strategically to ensure compliance with Bojangles's requirements, focusing on approved media channels and excluding the specified cost categories.