Does a Bojangles franchisee receive a protected territory around their restaurant location under the Franchise Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign a Franchise Agreement, you will receive the right to establish one Restaurant in a specific location and you will not receive any protected territory around that location.
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.
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. We also retain 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, whether such channel of distribution is now in existence or is hereafter developed and whether at retail or wholesale including, without limitation, sales through catalogs, e-commerce, mail order, carts or kiosks, mass merchandise, supermarkets, grocery stores, restaurants, institutional customers, ghost kitchens, club stores and any other outlet or method of distribution, pursuant to any terms and conditions as we may deem appropriate.
Source: Item 12 — TERRITORY (FDD pages 49–50)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if you sign a Franchise Agreement, you will receive the right to establish one Restaurant in a specific location and you will not receive any protected territory around that location. This means that as a Bojangles franchisee, you will not have exclusive rights to the area surrounding your restaurant. Other franchisees, outlets owned by Bojangles, or other channels of distribution or competitive brands that Bojangles controls may compete in the same area. Therefore, a franchisee could face direct competition from other Bojangles restaurants or alternative sales channels in the vicinity of their location.
However, if you sign a Development Agreement with Bojangles, you will be granted an Assigned Area in which you are allowed to develop Restaurants. 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. During the term of the Development Agreement, if you are in full compliance with all agreements with Bojangles, Bojangles will not establish, nor license anyone other than you to establish, any new Bojangles Restaurant under the System in your Assigned Area.
Bojangles retains certain rights even within an Assigned Area. Bojangles and its affiliates retain the right to establish and operate Bojangles Restaurants at any location outside your Assigned Area; 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; operate, and license others to operate, Bojangles Restaurants utilizing the System in your Assigned Area that are located in specific venues such as airports, train stations, military facilities, gas stations, convenience stores, schools, colleges, universities, hospitals, theme parks, or within one mile along each side of interstate highways located within your Assigned Area. 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, whether such channel of distribution is now in existence or is hereafter developed and whether at retail or wholesale including, without limitation, sales through catalogs, e-commerce, mail order, carts or kiosks, mass merchandise, supermarkets, grocery stores, restaurants, institutional customers, ghost kitchens, club stores and any other outlet or method of distribution, pursuant to any terms and conditions as Bojangles may deem appropriate.
This lack of a protected territory under the Franchise Agreement is a significant factor for prospective franchisees to consider. While the Development Agreement offers a limited territory, it is subject to Bojangles' retained rights and the franchisee's compliance with the development schedule. Franchisees should carefully evaluate the potential for competition from other Bojangles outlets and alternative distribution channels when assessing the viability of their restaurant location.