What document governs the operation of Bojangles cooperative advertising organizations?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require you to participate along with other franchisees in regional cooperative advertising organizations or programs established currently or in the future by us or other franchisees for the purpose of advertising and promoting the Bojangles System. Each cooperative must be organized and must operate from a written governing document, the Advertising Expense Sharing Agreement (the general form of which is attached as Exhibit F to this disclosure document, however, we may modify this form for a Restaurant in a DMA in which we have company-operated Restaurants) (the "Expense Sharing Agreement"). Except as otherwise provided below, at the time you execute a Franchise Agreement or Individual Franchise Agreement or Bojangles Express Franchise Agreement, you will be required to execute the Expense Sharing Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the operation of regional cooperative advertising organizations or programs is governed by a written document called the Advertising Expense Sharing Agreement. Bojangles has the right to require franchisees to participate in these regional cooperatives, which are established to promote the Bojangles System. The general form of the Advertising Expense Sharing Agreement is attached as Exhibit F to the FDD, but Bojangles may modify this form for Restaurants in a DMA (Designated Market Area) in which they have company-operated Restaurants. Franchisees are generally required to execute this Expense Sharing Agreement when they sign their Franchise Agreement, Individual Franchise Agreement, or Bojangles Express Franchise Agreement.
This agreement ensures that all members of the cooperative, including Bojangles and its franchisees, operate under a common set of rules and guidelines. It also outlines how advertising expenses are shared among the members. The cooperative advertising organizations allow franchisees to pool their resources and coordinate their advertising efforts, potentially leading to more effective marketing campaigns and greater brand awareness in their respective regions.
Franchisees should carefully review Exhibit F and any modifications to the Advertising Expense Sharing Agreement to understand their obligations and rights regarding cooperative advertising. They should also inquire about the specific terms and conditions of the agreement in their DMA, especially if Bojangles operates company-owned restaurants in the same area, as this may affect the agreement's terms. Understanding the structure and operation of these advertising cooperatives is crucial for franchisees to effectively manage their local and regional advertising efforts and ensure compliance with Bojangles's requirements.