Is the Bojangles franchise granted to the franchisee exclusive, and if not, what paragraphs of the franchise agreement outline the terms that affect exclusivity?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Franchisee acknowledges that this franchise is non-exclusive and is granted subject to the terms of Paragraph VII.C.(6) and VII.F.(6) hereof.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, the franchise granted to a franchisee is non-exclusive. Specifically, the franchise agreement states this explicitly and refers to specific paragraphs that further define the non-exclusivity terms. These paragraphs outline the rights retained by Bojangles and its affiliates. For a standard franchise agreement, Paragraphs VII.C.(6) and VII.F.(6) define the non-exclusivity terms. For a franchise agreement to operate a Bojangles restaurant located within a portion of an existing structure, Paragraphs IX.C.(6) and IX.F.(6) define the non-exclusivity terms.
These retained rights allow Bojangles to use its trademarks to sell products and services, grant licenses to others, acquire or merge with other businesses, and develop other systems using similar trademarks without providing any rights to the franchisee. Bojangles also retains the right to sell the same or similar products through any distribution channel, including retail, wholesale, e-commerce, and other outlets, under the Bojangles trademarks or other trademarks.
This non-exclusive arrangement means that a franchisee may face competition from other Bojangles restaurants or alternative distribution channels operated by Bojangles or its licensees. This could impact the franchisee's market share and profitability. Prospective franchisees should carefully review Paragraphs VII.C.(6) and VII.F.(6) or Paragraphs IX.C.(6) and IX.F.(6) of the Franchise Agreement to fully understand the scope of Bojangles' retained rights and the potential impact on their business.