Can a Bojangles franchisee credit a portion of their local and regional advertising expenditure to a regional program established by a cooperative arrangement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Recognizing the value of cooperative national and regional advertising and marketing, and the importance of standardizing such programs to further enhance the national goodwill and public image of the Bojangles System, Franchisor reserves the right and may in its sole discretion require Franchisee to participate along with other franchisees in regional cooperative advertising organizations or programs, established from time to time currently or in the future by Franchisor or by other franchisees for the purpose of advertising and promoting the Bojangles System.
In the event of the formation of such cooperative advertising groups, and Franchisee's participation therein, Franchisor shall permit Franchisee to credit a portion of the amount required to be expended for local and regional advertising in Paragraph XI.A. above to any regional program established by any such cooperative arrangement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees are generally required to spend at least 3% of their restaurant's gross sales on local and regional media advertising. This advertising can include various forms of media such as radio, television, magazines, newspapers, billboards, print, and direct mail, as well as public relations activities. However, certain costs like advertising production, marketing materials, food promotion, and signage are excluded from this expenditure.
The FDD also states that Bojangles recognizes the value of cooperative advertising. Bojangles retains the right to mandate that franchisees participate in regional cooperative advertising organizations or programs. These programs can be established either by Bojangles itself or by other franchisees to promote the Bojangles system.
If a franchisee participates in these cooperative advertising groups, Bojangles will allow them to credit a portion of their required local and regional advertising expenditure (the aforementioned 3% of gross sales) towards the regional program established by the cooperative arrangement. This provides franchisees with some flexibility in how they allocate their advertising budget, allowing them to leverage cooperative programs to fulfill their advertising obligations.