Can Bojangles reduce the scope of the non-compete covenant without the franchisee's consent?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Franchisee understands and acknowledges that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in Paragraph XVII.A. or any portion thereof, without Franchisee's consent, effective immediately upon receipt by Franchisee of written notice thereof; and Franchisee agrees that it shall comply forthwith with any covenant as so modified.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles has the right to reduce the scope of any covenant set forth in Paragraph XVII.A, which pertains to non-compete agreements, without the franchisee's consent. This reduction becomes effective immediately upon the franchisee receiving written notice. The franchisee is obligated to comply with the modified covenant as soon as they receive this notice.
This clause provides Bojangles with considerable flexibility to adjust the non-compete terms during the franchise agreement. This could be advantageous if Bojangles decides to allow franchisees more freedom to engage in other business ventures or if they want to modify the restricted area due to changing market conditions. However, it also introduces uncertainty for the franchisee, as the non-compete terms they initially agreed to can be altered by Bojangles at any time during the agreement.
Franchisees should be aware that Bojangles retains the power to unilaterally change the non-compete agreement, potentially impacting their future business opportunities. While the franchisor can reduce the scope of the non-compete, it cannot expand it without the franchisee's consent. This is a significant point to consider, as it could affect the franchisee's ability to operate or invest in competing businesses, even after the franchise agreement expires or is terminated. Franchisees should seek clarification on what specific circumstances might trigger such a modification and how it could affect their long-term business plans.