Is the Bojangles Franchisor obligated to ensure that a franchisee benefits directly or proportionally from expenditures made by the Bojangles Marketing Development Fund?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and acknowledges that the Fund is intended to maximize general public recognition and acceptance of the trade names, trademarks, and service marks which are designated as part of the System for the benefit of the System through research and the creation of marketing materials; and that Franchisor and its designee undertake no obligation, in administering the Fund, to make expenditures which are equivalent or proportionate to a franchisee's contribution, or to insure that any particular franchisee benefits directly or pro rata from Fund expenditures.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles is not obligated to ensure that a franchisee benefits directly or proportionally from expenditures made by the Bojangles Marketing Development Fund. The fund is intended to maximize general public recognition and acceptance of the trade names, trademarks, and service marks. Bojangles has sole discretion over the creative concepts, materials, and media used in advertising programs.
Bojangles does not commit to making expenditures equivalent or proportionate to a franchisee's contribution, nor does it guarantee that any specific franchisee will benefit directly or pro rata from the Fund's expenditures. This means that while franchisees are required to contribute to the fund, there is no assurance that the advertising and promotional activities will directly benefit their specific location or market area.
Bojangles contributes to the fund for its company-owned restaurants. The contribution is equivalent to the contributions required of comparable franchised Bojangles restaurants within the Bojangles system. The average contribution for each company-owned Restaurant will be equal to the average contribution per franchise-owned Restaurant. This average per Restaurant contribution for franchise-owned Restaurants will be calculated by dividing the total contributions of franchisees to the Fund by the total number of franchise-owned Restaurants. Bojangles's total contribution to the Fund will equal this average.
All contributions to the Fund are to be used exclusively for advertising and promotion of the Bojangles system. This includes the cost of preparing and conducting advertising campaigns across various media, conducting research, employing advertising agencies, and providing promotional materials to franchisees. The funds cannot be used to cover Bojangles's general operating expenses, except for reasonable administrative expenses related to the fund's administration and advertising programs.