Is Bojangles obligated to ensure that any particular franchisee benefits directly or pro rata from expenditures from 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.
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).
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles franchisees are required to contribute to the Bojangles Marketing Development Fund. However, Bojangles is not obligated to ensure that any specific franchisee benefits directly or proportionally from how the funds are spent. The purpose of the fund is to enhance the overall recognition and acceptance of the Bojangles brand. Bojangles has sole discretion over the advertising programs, including the creative concepts, materials, and media used.
Bojangles directs the creation of all advertising programs and has sole discretion over the creative concepts, materials, and media used in such programs. The fund is intended to maximize general public recognition and acceptance of the Bojangles trade names, trademarks, and service marks for the benefit of the entire Bojangles system.
This means that while a franchisee is required to contribute a percentage of their gross sales to the fund, there is no guarantee that the advertising and promotional activities funded by these contributions will directly benefit their specific location or market area. Bojangles aims to use the funds to benefit the system as a whole, which may not always translate into direct, measurable benefits for each individual franchisee. Franchisees also need to be aware that other franchisees may have different agreement terms and may not be required to contribute the same amount to the fund.
Bojangles also contributes to the fund for its company-owned restaurants. The contribution is equivalent to the amount required of comparable franchised Bojangles restaurants within the Bojangles system. This contribution is calculated by dividing the total contributions of franchisees by the total number of franchise-owned restaurants to determine an average contribution per restaurant. Bojangles then multiplies this average by the total number of company-owned restaurants to determine its total contribution to the fund. All contributions to the fund are to be used exclusively for advertising and promotion of the Bojangles system.