After the Bojangles franchise agreement expires or terminates, for how long is the franchisee restricted from engaging in or having an interest in a competing restaurant business?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) Any fast food restaurant business which is located (a) within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction, or under construction, or (b) within the designated market area within which the Restaurant is situated.
(2) During the continuing uninterrupted period commencing upon the expiration or termination of this Agreement, regardless of the cause for termination, and continuing for two (2) years thereafter, 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, own, maintain, advise, help, invest in, make loans to, be employed by, be the landlord of, engage in, or have any interest in:
(a) Any restaurant business which: (i) competes with any Bojangles restaurant or which sells fried chicken, biscuits and/or biscuit sandwiches, or other items which are featured menu items at Bojangles restaurants as of the termination or expiration of this Agreement, and (ii) is located within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction or under construction as of the termination or expiration of this Agreement; or
(b) Any fast food restaurant business which is located (i) within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction, or under construction as of the termination or expiration of this Agreement, or (ii) within the designated market area within which the Restaurant is situated.
B.
Paragraph XVI.A. shall not apply to ownership by Franchisee of less than two percent (2%) beneficial interest in the outstanding equity securities of any corporation which is registered under the Securities Exchange Act of 1934.
- C.
The parties agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, after the franchise agreement expires or terminates, a franchisee faces certain restrictions regarding involvement with competing businesses. Specifically, for a period of two years following the expiration or termination of the agreement, the franchisee (including their shareholders or members) is prohibited from owning, maintaining, advising, helping, investing in, making loans to, being employed by, being a landlord of, engaging in, or having any interest in a competing restaurant business. This restriction applies unless the franchisor provides written approval otherwise.
The restrictions apply to any restaurant business that competes with Bojangles or sells similar items like fried chicken, biscuits, or biscuit sandwiches, and is located within ten miles of the former Bojangles restaurant or any other Bojangles location that is open, planned for construction, or under construction. The restrictions also extend to any fast food restaurant business located within ten miles of a Bojangles restaurant or within the designated market area where the former Bojangles restaurant was situated.
However, these restrictions do not apply if the franchisee owns less than two percent beneficial interest in the outstanding equity securities of any corporation registered under the Securities Exchange Act of 1934. This exception allows franchisees to hold minor investments in publicly traded companies, even if those companies operate competing restaurants. These covenants are independent, and if any part is deemed unenforceable, the franchisee agrees to be bound by a lesser covenant that imposes the maximum duty permitted by law.