When signing a Development Agreement with Bojangles, what factors are considered when determining the Assigned Area?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
If we sign a Development Agreement with you, we will grant you a territory in which you are allowed to develop Restaurants. The territory is referred to as an Assigned Area in the Development Agreement. The Assigned Area will be described by street boundaries or political subdivisions or may designate certain locations, intersections or market areas. The Assigned Area will be negotiated individually with you. The Assigned Area and the individual franchise locations will be based upon relevant factors including population, traffic patterns, trade areas and proximity to business generators such as schools and hospitals, and your ability to develop the Assigned Area in a timely manner. You must always obtain our approval for each specific Restaurant location within the Assigned Area. If we approve the location, a franchise is granted for that specific location only and we will sign a Franchise Agreement with you for that location. You do not receive any territorial rights under the Franchise Agreement.
Since we retain certain rights mentioned below within your Assigned Area, you will not receive an exclusive territory; you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Your right to develop Restaurants in the Assigned Area will be for a limited time and be subject to your compliance with the terms of your Development Agreement and our retained rights. After the expiration or early termination of the Development Agreement you will no longer have rights to develop in the Assigned Area. You do not have the right to open and operate any Restaurants in excess of the number of Restaurants specified in the Development Agreement. The Development Agreement does not grant options, rights of first refusal or similar rights to acquire additional franchises beyond those listed in the development schedule.
Source: Item 12 — TERRITORY (FDD pages 49–50)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the determination of an Assigned Area within a Development Agreement is based on several factors. The Assigned Area, which defines the territory where a franchisee is permitted to develop restaurants, is negotiated individually. This area is described using street boundaries, political subdivisions, or specific locations like intersections or market areas.
Several relevant factors influence the size and scope of the Assigned Area. These include population density, traffic patterns, established trade areas, and the proximity of business generators such as schools and hospitals. Bojangles also considers the franchisee's capacity to develop the Assigned Area effectively and in a timely manner. However, Bojangles retains certain rights within the Assigned Area, meaning the franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution.
It is important to note that while a Development Agreement grants the right to develop restaurants within the Assigned Area, each specific restaurant location requires Bojangles's approval. Upon approval of a location, a Franchise Agreement is granted for that specific location only, without any territorial rights. The right to develop restaurants in the Assigned Area is limited in time and subject to compliance with the Development Agreement. After the agreement's expiration or termination, the franchisee loses the right to further development in the area. The franchisee cannot open more restaurants than specified in the development schedule, and the agreement does not grant options or rights of first refusal for additional franchises beyond those listed in the schedule.