Is a Bojangles franchisee required to offer exclusively Pepsi-Cola Company brand post-mix soft drink products and colas?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
m ("Addendum") is made as of ______________ to the Franchise Agreement of same date between Franchisor and Franchisee attached hereto ("Franchise Agreement").
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- The Pepsi-Cola Company is the Bojangles System Exclusive Beverage Supplier of Choice throughout the domestic Bojangles System for new franchisees. Accordingly, Franchisee shall offer exclusively Pepsi-Cola Company brand post-mix soft drink products and colas. This exclusive designation and choice of products may be changed at Franchisor's option upon written notice by Franchisor.
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- To the extent this Addendum is construed to conflict with the terms of the Franchise Agreement, the terms of the Addendum shall be deemed to control. The terms of this Addendum shall be considered terms of the Franchise Agreement, as if incorporated therein, the breach of which shall be considered a default under Paragraph XIV.B. of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, new franchisees are generally required to offer Pepsi-Cola Company brand post-mix soft drink products and colas exclusively. This requirement is outlined in an addendum to the franchise agreement. Specifically, the addendum states that "The Pepsi-Cola Company is the Bojangles System Exclusive Beverage Supplier of Choice throughout the domestic Bojangles System for new franchisees." Therefore, franchisees must offer Pepsi products. This requirement applies to the Bojangles Franchise Agreement, the Bojangles Renewal Franchise Agreement, the Bojangles Express Franchise Agreement, and the Bojangles Individual Franchise Agreement.
This exclusive beverage agreement means that franchisees cannot sell Coca-Cola or other competing brands of post-mix soft drinks and colas unless Bojangles changes this requirement. This could impact a franchisee's ability to cater to customer preferences if there is a strong local demand for alternative brands. It also limits the franchisee's negotiation power with beverage suppliers, as they are essentially locked into a contract with Pepsi-Cola Company.
However, Bojangles retains the right to change this exclusive designation at any time. The addendum includes the caveat that "This exclusive designation and choice of products may be changed at Franchisor's option upon written notice by Franchisor." This provides Bojangles with the flexibility to switch beverage suppliers in the future, which could be beneficial or detrimental to franchisees depending on the circumstances. Franchisees should stay informed of any potential changes to beverage suppliers, as these changes could impact their operations and profitability.
Additionally, the franchise agreement states that Bojangles retains the right to make additions or changes to the beverage product brands offered by the Franchisee. This reinforces Bojangles' control over the beverage selection at its franchise locations. While the initial agreement mandates Pepsi products, Bojangles can modify this selection, potentially adding or removing specific brands as they see fit. This clause provides Bojangles with the flexibility to adapt to changing market conditions and consumer preferences, but it also means that franchisees must be prepared to adjust their beverage offerings as directed by the franchisor.