If a Bojangles franchisee participates in a regional cooperative advertising program, can they credit a portion of that expense towards their local and regional advertising expenditure requirement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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 XI.A. above to any regional program established by any such cooperative arrangement.
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 a minimum of three percent of their restaurant's gross sales on local and regional media advertising. This advertising can include various forms of media such as radio, television, magazines, newspapers, and billboards. However, certain costs like advertising production, marketing materials, food promotion, and signage are excluded from this expenditure.
The FDD also states that Bojangles may, at its discretion, require franchisees to participate in regional cooperative advertising programs. These programs are designed to enhance the brand's image and goodwill through standardized advertising efforts.
If a Bojangles franchisee participates in a cooperative advertising program, they are allowed to credit a portion of their contribution to the regional program towards their mandatory local and regional advertising expenditure. This provides some flexibility in how franchisees allocate their advertising budget, allowing them to leverage cooperative programs while still meeting their overall spending requirement of three percent of gross sales.