factual

What are the requirements for a Bojangles franchisee to participate in Multi-Channel Programs approved by Bojangles?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

Recognizing the value of advertising, and the importance of the standardization of advertising programs to the furtherance of the goodwill and public image of the Bojangles System, the parties agree as follows:

A. Franchisee shall spend not less than three percent (3%) of the Gross Sales of the Restaurant on local and regional media advertising, in addition to any advertising contribution required under Paragraphs IV.C. and XI.E. hereof. Franchisee shall demonstrate on a quarterly basis, to the reasonable satisfaction of Franchisor, that Franchisee has made such expenditures. Such advertising shall include radio, television, magazine, newspaper, billboard campaigns, 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.

  • 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.

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

The 2025 Bojangles Franchise Disclosure Document outlines the advertising obligations of franchisees. Bojangles franchisees are generally required to spend a minimum of 3% of their restaurant's gross sales on local and regional media advertising. This advertising must be demonstrated on a quarterly basis to Bojangles' satisfaction and can include various forms of media such as radio, television, magazines, newspapers, and billboards. However, certain costs like advertising production, marketing materials, food promotion, and signage are excluded from this spending requirement.

Bojangles, at its discretion, may require franchisees to participate in regional cooperative advertising organizations or programs. These programs are designed to enhance the brand's image and goodwill. If a franchisee participates in these cooperative advertising groups, they may be able to credit a portion of their mandatory local and regional advertising expenditure towards the regional program.

If a Bojangles franchisee fails to meet the 3% spending requirement or does not participate in a cooperative advertising program when requested by Bojangles, the franchisee will be required to pay 3% of the restaurant's gross sales to Bojangles. Bojangles then has the discretion to contribute these funds to a franchisee cooperative organization in the franchisee's market area or use the funds to create advertising that promotes the Bojangles brand in that area. The FDD does not specifically mention "Multi-Channel Programs", but the advertising guidelines described would apply to any approved advertising programs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.