Does a Bojangles franchisee receive an exclusive territory under the Franchise Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
RRITORY**
Development Agreement
If we sign a Development Agreement with you, we will grant you a territory in which you are allowed to develop Restaurants. The territory is referred to as an Assigned Area in the Development Agreement. The Assigned Area will be described by street boundaries or political subdivisions or may designate certain locations, intersections or market areas. The Assigned Area will be negotiated individually with you. The Assigned Area and the individual franchise locations will be based upon relevant factors including population, traffic patterns, trade areas and proximity to business generators such as schools and hospitals, and your ability to develop the Assigned Area in a timely manner. You must always obtain our approval for each specific Restaurant location within the Assigned Area. If we approve the location, a franchise is granted for that specific location only and we will sign a Franchise Agreement with you for that location. You do not receive any territorial rights under the Franchise Agreement.
Since we retain certain rights mentioned below within your Assigned Area, you will not receive an exclusive territory; you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Your right to develop Restaurants in the Assigned Area will be for a limited time and be subject to your compliance with the terms of your Development Agreement and our retained rights. After the expiration or early termination of the Development Agreement you will no longer have rights to develop in the Assigned Area. You do not have the right to open and operate any Restaurants in excess of the number of Restaurants specified in the Development Agreement. The Development Agreement does not grant options, rights of first refusal or similar rights to acquire additional franchises beyond those listed in the development schedule.
During the term of the Development Agreement, if you are in full compliance with all agreements with us, we will not establish, nor license anyone other than you to establish, any new Bojangles Restaurant under the System in your Assigned Area. However, we and our affiliates retain the right, among others, on any terms and conditions we deem advisable, and without granting you any rights therein: (1) to establish and operate and license others to establish and operate Bojangles Restaurants at any location outside your Assigned Area; (2) to establish and operate or license others to establish and operate Bojangles Restaurants at any location within your Assigned Area after the expiration or termination of your development schedule or your Development Agreement; (3) operate, and license others to operate, Bojangles Restaurants utilizing the System in your Assigned Area that are located: (i) in airports, train stations, bus stations, transportation centers, travel plazas, stadiums, arenas, convention centers, military facilities, gas stations, convenience stores, schools, colleges, universities, hospitals, theme parks, office buildings, food courts, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location; or (ii) within one (1) mile along each side of interstate highways located within your Assigned Area.
Source: Item 12 — TERRITORY (FDD pages 49–50)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the territorial rights granted to a franchisee depend on whether they sign a Development Agreement or a Franchise Agreement. If a franchisee signs a Development Agreement, Bojangles grants them an Assigned Area in which they are allowed to develop Restaurants. The Assigned Area is negotiated individually and described by street boundaries, political subdivisions, or designated locations. During the term of the Development Agreement, if the franchisee is in full compliance with all agreements, Bojangles will not establish or license anyone other than the franchisee to establish any new Bojangles Restaurant under the System in their Assigned Area. However, this is subject to several exceptions.
If a franchisee signs a Franchise Agreement, they receive the right to establish one Restaurant in a specific location but do not receive any protected territory around that location. Bojangles retains the right to purchase, merge with, acquire, or become associated with any business of any kind under other systems and/or trademarks and/or develop and establish other systems using the same or similar Proprietary Marks, or any other proprietary marks, and to grant licenses or franchises thereto without providing any rights to the franchisee. Bojangles also retains the right to offer goods and services associated with the Proprietary Marks throughout the System including any Assigned Area, including without limitation, the right to sell the same or similar products that are authorized for sale at Bojangles Restaurants under the Proprietary Marks or under other trademarks or trade dress and through any other channel of distribution.
Even with a Development Agreement, a Bojangles franchisee does not receive an exclusive territory and may face competition from other franchisees, from outlets that Bojangles owns, or from other channels of distribution or competitive brands that Bojangles controls. Bojangles also retains the right to establish and operate or license others to establish and operate Bojangles Restaurants at any location within the franchisee's Assigned Area after the expiration or termination of their development schedule or Development Agreement. Furthermore, Bojangles retains the right to operate, and license others to operate, Bojangles Restaurants utilizing the System in the franchisee's Assigned Area that are located in specific locations such as airports, train stations, bus stations, transportation centers, travel plazas, stadiums, arenas, convention centers, military facilities, gas stations, convenience stores, schools, colleges, universities, hospitals, theme parks, office buildings, food courts, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location; or within one (1) mile along each side of interstate highways located within the franchisee's Assigned Area.
In summary, while a Development Agreement with Bojangles grants a defined area for development, it does not guarantee an exclusive territory. A Franchise Agreement provides no territorial protection at all. Prospective franchisees should carefully consider these factors and the potential for competition when evaluating a Bojangles franchise opportunity.