What is the effect on a Bojangles Franchisee's duties and obligations if their restaurant is in a DMA that is not an Eligible DMA?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Restaurant is physically located receives a substantially higher percentage of coverage (according to Nielsen Ratings) from television stations located in the DMA in which such Restaurant is physically located than from TV stations located in the DMA to which such transfer is sought. No Initial Franchisee shall be entitled to make any transfer of Restaurants from one DMA to another hereunder unless such Initial Franchisee shall be current in its obligations to make DMA contributions at the time of such transfer.
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- NONELIGIBLE DMAs: Any DMA which is not an Eligible DMA under this Agreement will not carry out any of the functions called for herein until such time as it may become an Eligible DMA, and no Franchisee shall have any duties or obligations hereunder in respect to any Restaurants owned by him in such DMA unless and until such Restaurants be transferred under the terms hereunder to an Eligible DMA of which such Franchisee is a member.
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Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, a franchisee's duties and obligations are affected if their restaurant is located in a DMA (Designated Market Area) that is not an Eligible DMA. An "Eligible DMA" is defined as a DMA with two or more members. If a DMA does not meet this criterion, it is considered a Noneligible DMA.
For franchisees operating in a Noneligible DMA, they do not have any duties or obligations under the agreement concerning restaurants they own in that DMA. This remains the case unless and until the restaurants are transferred to an Eligible DMA where the franchisee is a member. This means that while the restaurant is in a Noneligible DMA, the franchisee is not required to participate in DMA-level activities or contribute to DMA advertising programs.
This provision offers a degree of relief to franchisees in areas where there are few other Bojangles locations, as they are not burdened with the responsibilities and financial contributions associated with DMA membership until the DMA becomes eligible. However, it also means they may not benefit from cooperative advertising and marketing efforts until the DMA reaches the required number of members. Franchisees should consider the current DMA status and potential for growth when evaluating a location.