Is a Bojangles franchisee responsible for the costs and expenses associated with the Special Promotions established by the franchisor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Recognizing the value of advertising, and the importance of the standardization of advertising programs to the furtherance of the goodwill and public image of the Bojangles System, the parties agree as follows:
- A. Franchisee shall spend not less than three percent (3%) of the Gross Sales of the Restaurant on local and regional media advertising, in addition to any advertising contribution required under Paragraphs IV.C. and XII.E. hereof. Franchisee shall demonstrate on a quarterly basis, to the reasonable satisfaction of Franchisor, that Franchisee has made such expenditures. Such advertising shall include radio, television, magazine, newspaper, billboard campaigns, print, direct mail and other forms of advertising media and public relations activities but shall not include the costs of advertising production, production of other marketing materials, cost of food promotion, point of purchase materials, telephone book advertising, stationery, or restaurant indoor or outdoor site location signs.
- B. 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 XII.A. above to any regional program established by any such cooperative arrangement.
- C.
If Franchisee has failed to make or report the expenditure of the three percent (3%) of Gross Sales as required in Paragraph XII.A. above in any quarter or if Franchisee shall fail to participate in a cooperative advertising program after request by Franchisor as required in Paragraph XII.B. above, Franchisee shall thereafter, after written notice by Franchisor, pay to Franchisor three percent (3%) of the Gross Sales of the Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
Based on the 2025 Bojangles Franchise Disclosure Document, franchisees are responsible for certain advertising and promotional costs. Franchisees must spend at least 3% of their restaurant's gross sales on local and regional media advertising. This advertising can include various media such as radio, television, magazines, newspapers, and billboards. However, this 3% does not cover advertising production costs, marketing materials, food promotion costs, point-of-purchase materials, telephone book advertising, stationery, or restaurant signs.
Bojangles also reserves the right to require franchisees to participate in regional cooperative advertising programs. If a franchisee fails to spend the required 3% on local advertising or participate in a cooperative advertising program when requested, Bojangles can require the franchisee to pay the 3% of gross sales directly to Bojangles.
Bojangles uses contributions to the Bojangles Marketing Development Fund for advertising and promotion of the Bojangles system. This includes the costs of preparing and conducting advertising campaigns across various media, conducting research, employing advertising agencies, and providing promotional materials to franchisees. Franchisees should note that while the fund is used for system-wide advertising, they are still responsible for their local advertising expenditures and potential participation in cooperative programs.