factual

What is the exclusive purpose for which contributions to the advertising fund are used within the Bojangles system?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

All contributions to the Fund shall be used exclusively for advertising and promotion of the Bojangles System (including, without limitation, the cost of preparing and conducting television, radio, video, digital, print, and billboard advertising campaigns and other public relations activities; conducting research; employing advertising agencies and other specialists to assist therein; and preparing and providing promotional brochures and other point of purchase marketing materials to franchisees in the Bojangles System).

All sums paid by Franchisee and other franchisees to the Fund shall not be used to defray any of Franchisor's general operating expenses except for such reasonable administrative expenses and overhead, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the Fund and advertising programs, including, without limitation, conducting market research, preparing marketing and advertising materials, and collecting and accounting for assessments for the Fund.

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, all contributions to the Bojangles Marketing Development Fund must be used exclusively for advertising and promotion of the Bojangles system. This includes covering the costs associated with various advertising campaigns. These campaigns may include television, radio, video, digital, print, and billboard advertising. The fund also supports other public relations activities.

In addition to direct advertising costs, the fund can be used for conducting research to improve marketing strategies. It also covers the employment of advertising agencies and other specialists who assist in these efforts. The fund also pays for the preparation and provision of promotional brochures and other point-of-purchase marketing materials that are distributed to franchisees within the Bojangles system.

While the fund is primarily for advertising and promotion, the franchisor, Bojangles, can use the money to cover reasonable administrative expenses and overhead that they incur while administering the fund and its advertising programs. These expenses can include conducting market research, preparing marketing and advertising materials, and managing the collection and accounting of fund assessments.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.