When are Bojangles franchisees required to execute the Advertising Expense Sharing Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require you to participate along with other franchisees in regional cooperative advertising organizations or programs established currently or in the future by us or other franchisees for the purpose of advertising and promoting the Bojangles System. Each cooperative must be organized and must operate from a written governing document, the Advertising Expense Sharing Agreement (the general form of which is attached as Exhibit F to this disclosure document, however, we may modify this form for a Restaurant in a DMA in which we have company-operated Restaurants) (the "Expense Sharing Agreement"). Except as otherwise provided below, at the time you execute a Franchise Agreement or Individual Franchise Agreement or Bojangles Express Franchise Agreement, you will be required to execute the Expense Sharing Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, franchisees are generally required to execute the Advertising Expense Sharing Agreement at the time they execute a Franchise Agreement, Individual Franchise Agreement, or Bojangles Express Franchise Agreement. This agreement formalizes participation in regional cooperative advertising organizations or programs, which Bojangles may establish. However, Bojangles retains the right to modify the standard form of the Expense Sharing Agreement for restaurants located in a Designated Market Area (DMA) where Bojangles also operates company-owned restaurants.
This requirement ensures that franchisees contribute to and participate in regional advertising efforts, which are deemed important for maintaining the goodwill and public image of the Bojangles system. The cooperative advertising organizations are governed by a written document, the Advertising Expense Sharing Agreement, which outlines the operational framework for the cooperative. Bojangles maintains the flexibility to adjust the terms of this agreement, particularly in markets where it has a direct operational presence through company-owned restaurants.
For prospective franchisees, this means that signing the franchise agreement also commits them to the terms of the Advertising Expense Sharing Agreement. They should carefully review Exhibit F of the FDD, which contains the general form of this agreement, to understand their obligations regarding participation in cooperative advertising. Franchisees should also be aware that the specific terms of the agreement may vary if their restaurant is located in a DMA with company-operated restaurants. Understanding these advertising obligations is crucial for budgeting and planning marketing strategies as a Bojangles franchisee.