If a Bojangles franchisee fails to meet the required advertising expenditure or participate in cooperative advertising, what percentage of gross sales must they pay to the franchisor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee has failed to make or report the expenditure of the three percent (3%) of Gross Sales as required in Paragraph XI.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 XI.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 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees are required to spend at least 3% of their restaurant's gross sales on local and regional advertising. Franchisees must also participate in cooperative advertising programs if required by Bojangles. These advertising expenditures are intended to support the Bojangles system's goodwill and public image.
If a Bojangles franchisee fails to either spend the required 3% of gross sales on advertising or fails to participate in a cooperative advertising program when requested, the franchisee will be required to pay Bojangles 3% of the restaurant's gross sales. This payment is triggered after written notice from Bojangles.
This policy ensures that all Bojangles franchisees contribute to advertising and marketing efforts, even if they do not directly manage their own advertising campaigns or participate in cooperative programs. The 3% payment of gross sales to Bojangles serves as an alternative way to meet the advertising obligations outlined in the franchise agreement.