Does the Bojangles franchise agreement allow for any exceptions to the prohibition against diverting business or customers to competitors during the term of the agreement, and if so, under what condition?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
XVI. COVENANTS
- A. Franchisee acknowledges that, pursuant to this Agreement, Franchisee will receive valuable specialized training and confidential information, including, without limitation, information relating to the operational, sales, promotional, and marketing methods and techniques of Franchisor and the System. Accordingly, Franchisee covenants that:
- (1) During the term of this Agreement, except as otherwise approved in writing by Franchisor, Franchisee and its shareholders or members shall not, either directly or indirectly, for themselves, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or limited liability company:
- (a) Divert or attempt to divert any business or customer of the Restaurant to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's Proprietary Marks, Trade Dress and the System; or
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the franchise agreement generally prohibits franchisees from diverting business or customers to competitors during the term of the agreement. However, there is an exception to this rule. The agreement states that franchisees and their shareholders or members may not divert or attempt to divert any business or customer of the Restaurant to any competitor, unless it is otherwise approved in writing by Bojangles. This means that if a franchisee obtains written approval from Bojangles, they may be allowed to engage in activities that would otherwise be considered a diversion of business or customers.
This exception provides Bojangles with the flexibility to make decisions on a case-by-case basis, potentially allowing franchisees to pursue opportunities that might otherwise be restricted. For a prospective franchisee, this means that while there are restrictions in place to prevent competition and protect the Bojangles brand, there is also a mechanism for seeking approval for activities that might be beneficial or necessary for their specific circumstances.
It is important for potential franchisees to understand the scope of these restrictions and the process for obtaining written approval from Bojangles. They should carefully review the franchise agreement and discuss any potential conflicts or opportunities with the franchisor before signing the agreement. This will help ensure that they are aware of their obligations and rights under the agreement and can make informed decisions about their business operations.