Can Bojangles require franchisees to participate in regional cooperative advertising organizations or programs?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
hase materials, telephone book advertising, stationery, or restaurant indoor or outdoor site location signs.
- B. Recognizing the value of cooperative national and regional advertising and marketing, and the importance of standardizing such programs to further enhance the national goodwill and public image of the Bojangles System, Franchisor reserves the right and may in its sole discretion require Franchisee to participate along with other franchisees in regional cooperative advertising organizations or programs, established from time to time currently or in the future by Franchisor or by other franchisees for the purpose of advertising and promoting the Bojangles System. 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.
- C. If Franchisee has failed to make or report the expenditure of the three percent (3%) of Gross Sales as required in Paragraph XI.A. above in any quarter or if Franchisee shall fail to participate in a cooperative advertising program after request by Franchisor as required in Paragraph XI.B. above, Franchisee shall thereafter, after written notice by Franchisor, pay to Franchisor three percent (3%) of the Gross Sales of the Restaurant. Franchisor may then in its sole discretion contribute such amounts to any franchisee cooperative organization that operates in part or all of Franchisee's market area or Franchisor may expend such funds to create advertising that in Franchisor's sole determination will promote the Proprietary Marks and/or System in Franchisee's market area.
- D.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles reserves the right to require franchisees to participate in regional cooperative advertising organizations or programs. These programs are established either by Bojangles or by other franchisees to promote the Bojangles system.
If a franchisee participates in these cooperative advertising groups, they can credit a portion of their required local and regional advertising expenditure (3% of Gross Sales) towards the regional program. This means that instead of spending the entire 3% on their own local advertising, a portion can be allocated to the cooperative advertising effort.
However, if a franchisee fails to participate in a cooperative advertising program after being requested by Bojangles, they must pay Bojangles 3% of the restaurant's Gross Sales. Bojangles then has the discretion to contribute these funds to a franchisee cooperative organization operating in the franchisee's market area or use the funds to create advertising that promotes the Bojangles brand in the franchisee's market area. This ensures that even non-participating franchisees contribute financially to regional advertising efforts.
This requirement ensures that all franchisees contribute to the overall marketing and brand awareness of Bojangles, whether through direct participation in cooperative programs or through financial contributions managed by Bojangles. Prospective franchisees should consider this mandatory participation and potential financial implications when evaluating the franchise opportunity.