Does Bojangles retain the right to operate or license others to operate Bojangles Restaurants within a developer's Assigned Area in captive market locations such as airports, train stations, or hospitals?
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 franchisee's assigned area. Even if a developer has an assigned area, Bojangles maintains the right to establish, operate, and license others to operate Bojangles Restaurants in certain locations.
Specifically, Bojangles can operate or license restaurants within a franchisee's assigned area in captive market locations. These locations include 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. Bojangles also retains the right to operate or license restaurants within one mile along each side of interstate highways within the assigned area.
This means that a Bojangles franchisee may face competition from other Bojangles locations, even within their assigned area, if those locations fall under the specific categories outlined in the FDD. This is a significant consideration for potential franchisees as it could impact their revenue and market share. Franchisees should carefully evaluate the potential for these types of locations within their assigned area and understand the implications for their business.
Furthermore, Bojangles also retains the right to offer goods and services associated with their trademarks through any channel of distribution, including 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. This broad reservation of rights highlights that a Bojangles franchisee's territory is not exclusive and that Bojangles can compete through various channels, potentially impacting the franchisee's business.