During the term of the Bojangles agreement, can a developer or its shareholders/members own a restaurant that sells fried chicken and is located within the assigned area without written approval from Bojangles?
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:
(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, during the term of the agreement, a developer and its shareholders or members are restricted from owning or having an interest in any restaurant business that competes with Bojangles or sells similar menu items like fried chicken and biscuits within the assigned area. Specifically, this restriction applies to any restaurant business located within the assigned area or within ten miles of any Bojangles restaurant that is open, planned for construction, or under construction.
This restriction extends to various forms of involvement, including direct or indirect ownership, maintenance, advising, investing, lending, employment, being a landlord, engaging in, or having any interest in such competing restaurant businesses. The only exception is if Bojangles provides written approval allowing such activities.
This clause aims to protect Bojangles's market share and prevent franchisees from directly competing with the brand within their designated territory. It ensures that the developer remains focused on growing the Bojangles brand and does not divert resources or customers to competing ventures. For a prospective franchisee, this means they must avoid any conflicting business interests within the specified area unless they obtain explicit permission from Bojangles.