Does Bojangles retain the right to establish and operate Bojangles Restaurants within a developer's Assigned Area after the expiration or termination of the development schedule or Development Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Development Agreement, if you are in full compliance with all agreements with us, we will not establish, nor license anyone other than you to establish, any new Bojangles Restaurant under the System in your Assigned Area. However, we and our affiliates retain the right, among others, on any terms and conditions we deem advisable, and without granting you any rights therein: (1) to establish and operate and license others to establish and operate Bojangles Restaurants at any location outside your Assigned Area; (2) to establish and operate or license others to establish and operate Bojangles Restaurants at any location within your Assigned Area after the expiration or termination of your development schedule or your Development Agreement; (3) operate, and license others to operate, Bojangles Restaurants utilizing the System in your Assigned Area that are located: (i) in airports, train stations, bus stations, transportation centers, travel plazas, stadiums, arenas, convention centers, military facilities, gas stations, convenience stores, schools, colleges, universities, hospitals, theme parks, office buildings, food courts, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location; or (ii) within one (1) mile along each side of interstate highways located within your Assigned Area. We also retain the right to offer goods and services associated with the Proprietary Marks throughout the System including any Assigned Area, including without limitation, the right to sell the same or similar products that are authorized for sale at Bojangles Restaurants under the Proprietary Marks or under other trademarks or trade dress and through any other channel of distribution, whether such channel of distribution is now in existence or is hereafter developed and whether at retail or wholesale including, without limitation, sales through catalogs, e-commerce, mail order, carts or kiosks, mass merchandise, supermarkets, grocery stores, restaurants, institutional customers, ghost kitchens, club stores and any other outlet or method of distribution, pursuant to any terms and conditions as we may deem appropriate.
Source: Item 12 — TERRITORY (FDD pages 49–50)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles retains specific rights within a developer's Assigned Area, even after the development schedule or Development Agreement expires or terminates. Specifically, Bojangles has the right to establish, operate, and license others to establish and operate Bojangles Restaurants within the Assigned Area under these circumstances. This means that even if a developer's agreement ends, Bojangles can still open or allow others to open Bojangles restaurants in that same area.
This is a significant consideration for potential developers. While a Development Agreement grants the developer the exclusive right to develop Bojangles restaurants in an Assigned Area during the agreement's term (provided they are in full compliance), this exclusivity ends when the agreement expires or is terminated. After that, Bojangles can establish its own restaurants or grant franchises to others within the same Assigned Area, potentially creating direct competition for the original developer.
Furthermore, Bojangles also retains the right to operate or license others to operate Bojangles Restaurants in specific locations within the Assigned Area, such as airports, train stations, transportation centers, travel plazas, stadiums, arenas, convention centers, military facilities, gas stations, convenience stores, schools, colleges, universities, hospitals, theme parks, office buildings, food courts, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location; or within one (1) mile along each side of interstate highways located within your Assigned Area. They also retain the right to offer goods and services associated with the Proprietary Marks throughout the System including any Assigned Area, including without limitation, the right to sell the same or similar products that are authorized for sale at Bojangles Restaurants under the Proprietary Marks or under other trademarks or trade dress and through any other channel of distribution, whether such channel of distribution is now in existence or is hereafter developed and whether at retail or wholesale including, without limitation, sales through catalogs, e-commerce, mail order, carts or kiosks, mass merchandise, supermarkets, grocery stores, restaurants, institutional customers, ghost kitchens, club stores and any other outlet or method of distribution, pursuant to any terms and conditions as we may deem appropriate. This broad reservation of rights means that a developer's territory is not entirely exclusive, even during the term of the Development Agreement, and Bojangles can pursue alternative channels of distribution within that area.
Therefore, prospective Bojangles developers should carefully consider these retained rights and the potential for competition from Bojangles itself or other franchisees when evaluating the opportunity. Understanding the specific terms of the Development Agreement, the definition of the Assigned Area, and Bojangles's retained rights is crucial for making an informed investment decision.