Can a Bojangles franchisee credit a portion of their local and regional advertising expenditure towards 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 required to spend a minimum of 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, and billboards. However, certain costs like advertising production, marketing materials, food promotion, and site location signs are excluded from this expenditure.
The FDD stipulates that Bojangles may, at its discretion, require franchisees to participate in regional cooperative advertising programs. These programs can be established either by Bojangles itself or by other franchisees to promote the Bojangles system. If a franchisee participates in such a cooperative advertising program, they are allowed to credit a portion of their mandatory local and regional advertising expenditure (the 3% of gross sales) towards the regional program established by the cooperative arrangement.
However, if a Bojangles franchisee fails to spend the required 3% of gross sales on local and regional advertising or fails to participate in a cooperative advertising program when requested by Bojangles, the franchisee must pay 3% of their gross sales to Bojangles. This condition underscores the importance Bojangles places on consistent advertising and marketing efforts across its franchise system.