During the term of the Bojangles agreement, can a developer divert business from a Bojangles restaurant to a competitor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer acknowledges that, pursuant to this Agreement, Developer will receive valuable specialized training and confidential information, including, without limitation, information relating to the operational, sales, promotional, and marketing methods and techniques of Franchisor and the System.
In addition, Developer acknowledges its obligation to develop Restaurants hereunder.
Accordingly, Developer covenants that:
(1) During the term of this Agreement, except as otherwise approved in writing by Franchisor, Developer and its shareholders or members shall not, either directly or indirectly, for themselves, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or limited liability company:
(a) Divert or attempt to divert any business or customer of the Restaurants to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's Proprietary Marks, Trade Dress and the System; or
(b) Own, maintain, advise, help, invest in, make loans to, be employed by, be the landlord of, engage in, or have any interest in:
(i) Any restaurant business which: (a) competes with any Bojangles restaurant or which sells fried chicken, biscuits and/or biscuit sandwiches, or other items which are featured menu items at Bojangles restaurants; and (b) is located within the Assigned Area or within ten (10) miles from any Bojangles restaurant that is open, planned for construction or under construction; or
(ii) Any fast food restaurant business which is located (a) within the Assigned Area; or (b) within ten (10) miles from the site of any Restaurant developed hereunder or any Bojangles restaurant that is open, planned for construction, or under construction.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a developer is restricted from diverting business away from Bojangles restaurants to competitors during the term of the agreement. The agreement states that unless Bojangles provides written approval, the developer and its shareholders or members cannot directly or indirectly divert or attempt to divert any business or customers of the restaurants to any competitor. This includes actions that could harm the goodwill associated with Bojangles's proprietary marks, trade dress, and the overall system.
This restriction is in place to protect Bojangles's brand integrity and market position. The clause prevents developers from using their knowledge of the Bojangles system, gained through training and confidential information, to benefit a competing business. This is a standard protective measure in franchising, ensuring that franchisees remain committed to the success of the Bojangles system and do not undermine it by promoting or supporting rival businesses.
Furthermore, the agreement also restricts developers from owning, maintaining, advising, investing in, or being employed by any restaurant business that competes with Bojangles. This restriction applies to businesses selling similar items, such as fried chicken and biscuits, within the assigned area or within a ten-mile radius of any Bojangles restaurant. This non-compete provision is designed to prevent conflicts of interest and ensure that the developer's efforts are focused solely on growing the Bojangles brand.
These covenants are in place during the term of the agreement and also extend for a period of two years after the agreement's expiration or termination, with specific geographic limitations. This ensures continued protection for Bojangles even after the developer's formal association with the franchise has ended. Such measures are common in franchise agreements to safeguard the franchisor's investment in its brand and system.