What is the Bojangles Marketing Development Fund, and what is its purpose?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to make contributions to the Bojangles Marketing Development Fund (hereinafter "Fund") as required under Paragraph IV.C. hereof.
The Fund shall be maintained and administered by Franchisor or its designee, as follows:
- (1) Franchisor shall direct the creation of all advertising programs, with sole discretion over the creative concepts, materials, and media used in such programs.
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.
Franchisee is aware that there may be some franchisees operating under different forms of agreement and who may not be required to make payments into the Fund equivalent to Franchisee's payments.
- (2) Franchisor shall, for each of its company-owned Bojangles restaurants, make contributions to the Fund equivalent to the contributions required of comparable franchised Bojangles restaurants within the Bojangles System so that Franchisor's 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.
Franchisor's total contribution to the Fund will equal this average
per Restaurant contribution multiplied by Franchisor's total number of company-owned Restaurants; and
- (3) All contributions to the Fund shall be used exclusively for advertising and promotion of the Bojangles System (including, without limitation, the cost of preparing and conducting television, radio, video, digital, print, and billboard advertising campaigns and other public relations activities; conducting research; employing advertising agencies and other specialists to assist therein; and preparing and providing promotional brochures and other point of purchase marketing materials to franchisees in the Bojangles System).
All sums paid by Franchisee and other franchisees to the Fund shall not be used to defray any of Franchisor's general operating expenses except for such reasonable administrative expenses and overhead, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the Fund and advertising programs, including, without limitation, conducting market research, preparing marketing and advertising materials, and collecting and accounting for assessments for the Fund.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the Bojangles Marketing Development Fund, referred to as the "Fund," is where franchisees contribute as required under Paragraph IV.C. of their franchise agreement. The Fund is maintained and administered by Bojangles or its designee. Bojangles has sole discretion over the advertising programs, including the creative concepts, materials, and media used.
The primary purpose of the Fund is to maximize public recognition and acceptance of the Bojangles system's trade names, trademarks, and service marks. This is achieved through research and the creation of marketing materials designed to benefit the entire Bojangles system. Franchisees should note that Bojangles is not obligated to ensure that expenditures from the Fund are equivalent or proportionate to any individual franchisee's contribution, nor is there a guarantee that any franchisee will directly or pro rata benefit from the Fund's expenditures.
Bojangles also contributes to the Fund for its company-owned restaurants. The contribution is equivalent to what is required of comparable franchised Bojangles restaurants within the Bojangles system. The average contribution for each company-owned restaurant will equal the average contribution per franchise-owned restaurant. This average per restaurant contribution for franchise-owned restaurants is calculated by dividing the total contributions of franchisees to the Fund by the total number of franchise-owned restaurants. All contributions to the Fund are to be used exclusively for advertising and promotion of the Bojangles system.
These advertising and promotion activities include the costs of preparing and conducting television, radio, video, digital, print, and billboard advertising campaigns, as well as other public relations activities. The Fund also covers conducting research, employing advertising agencies and other specialists, and preparing and providing promotional brochures and other point-of-purchase marketing materials to franchisees in the Bojangles system. Sums paid into the Fund by franchisees are not used to defray Bojangles' general operating expenses, except for reasonable administrative expenses related to the administration or direction of the Fund and advertising programs.