For Bojangles Express Restaurants, what is the authorized business activity of the Developer, as opposed to standard Bojangles restaurants?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall be organized and validly existing in good standing under the laws of the state of its incorporation or organization;
- (2) Developer shall be qualified to do business in all states in which its business activities or the nature of the properties owned by it requires such qualification;
- (3) Developer shall be newly organized and its Articles of Incorporation or Charter, or if Developer is a limited liability company, Developer's Articles of Organization and Operating Agreement, shall at all times provide that Developer was organized and has authority only to develop, own and operate Bojangles restaurants; and that Developer shall not engage or invest in any business other than development, ownership and operation of Bojangles restaurants; [For Bojangles Express Restaurants, delete Paragraph III.A.(3) and substitute the following: "Developer shall be authorized to develop, own and operate Bojangles restaurants and shall be authorized to enter into this Agreement."]
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the authorized business activities for a Developer of Bojangles Express Restaurants are modified compared to those for standard Bojangles restaurants. For a regular Bojangles restaurant, the Developer's Articles of Incorporation or Organization must state that they are authorized only to develop, own, and operate Bojangles restaurants, and they cannot engage or invest in any other business. However, for Bojangles Express Restaurants, this restriction is removed.
Specifically, the FDD states that for Bojangles Express Restaurants, the standard requirement outlined in Paragraph III.A.(3) is deleted and replaced with a simpler statement: "Developer shall be authorized to develop, own and operate Bojangles restaurants and shall be authorized to enter into this Agreement." This means that a Developer for a Bojangles Express location is not restricted from engaging in or investing in other business ventures, unlike Developers for standard Bojangles restaurants.
This distinction could be significant for potential franchisees. It offers more flexibility to Bojangles Express Developers, allowing them to diversify their business interests beyond just Bojangles restaurants. This could potentially reduce risk for the franchisee, as their financial well-being isn't solely tied to the performance of their Bojangles franchise. However, it's important for prospective franchisees to fully understand the implications of this difference and how it aligns with their own business goals and financial situation.