How often must a Bojangles franchisee demonstrate that they have met the local and regional advertising expenditure requirements?

ic image of the Bojangles System. You must spend at least 3% of the Gross Sales of your Restaurant on local and regional media advertising, in addition to any other advertising contribution required as discussed below. You must demonstrate on a quarterly basis, to our reasonable satisfaction, that you have made such expenditures. This advertising shall include radio, television, magazine, newspaper, billboard campaigns, digital and social media, search engine listings, print, direct mail and other forms of advertising media and public relations activities but shall not include the costs of advertising production, production of other marketing materials, cost of food promotion, point of purchase materials, telephone book advertising, stationery, or Restaurant indoor or outdoor site location signs. We may offer periodically to provide, upon your request and at your expense, approved local advertising and promotional plans and materials. We may require that some or all of this spending requirement be made by participation with us or other franchisees in advertising cooperative organizations or programs or by direct payments made to us as a contribution to our media spending outside of any cooperative organization or program. You must pay us $153 each month for each Restaurant that you operate, for payment to our approved digital channel vendors that power our mobile application and website, collect customer data, and customize customer advertising materials and local advertising programs for your restaurant trading area, including digital exclusives. This amount may change from time to time based on the fees charged by our vendors and the number of participating Restaurants in the Bojangles System. This amount qualifies towards the 3% of Gross Sales you are required to spend for Local Marketing. Franchisees operating before May 1, 1989 may have different contractual obligations and reduced local and regional advertising requirements.

If you fail to make or report the required advertising expenditures, we may require you to make payment directly to us or it may be drafted by us from your account for spending by us at our discretion on behalf of our Proprietary Marks and the Bojangles System. Any payments made to us that are not spent during the fiscal year received may be carried forward for use in the next fiscal year.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 37–49)