During the term of the Bojangles agreement, can a franchisee divert business to a competitor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
XVI. COVENANTS
- A. Franchisee acknowledges that, pursuant to this Agreement, Franchisee 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. Accordingly, Franchisee covenants that:
- (1) During the term of this Agreement, except as otherwise approved in writing by Franchisor, Franchisee 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 Restaurant 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 ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction or under construction; or
(ii) Any fast food restaurant business which is located (a) within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction, or under construction, or (b) within the designated market area within which the Restaurant is situated.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees are restricted from diverting business to competitors during the term of their agreement. Specifically, unless Bojangles approves otherwise in writing, a franchisee and their shareholders or members cannot directly or indirectly divert or attempt to divert any business or customer of the Restaurant to any competitor. This includes any action that could harm the goodwill associated with Bojangles's Proprietary Marks, Trade Dress, and the System.
This restriction is in place to protect Bojangles's brand integrity and market position. The clause prevents franchisees from using their access to the Bojangles system, training, and confidential information to benefit a competing business. This is a standard practice in franchising, as franchisors need to ensure that franchisees are fully committed to the success of the brand and not working against it.
Furthermore, the agreement also restricts franchisees from being involved with competing businesses within a certain radius of a Bojangles restaurant. During the term of the agreement, franchisees are prohibited from owning, maintaining, advising, helping, investing in, making loans to, being employed by, being the landlord of, engaging in, or having any interest in a restaurant business that competes with Bojangles or sells similar menu items within ten miles of a Bojangles restaurant. They are also restricted from involvement with any fast food restaurant business within ten miles or within the designated market area of a Bojangles location. These restrictions are designed to prevent direct competition from franchisees and protect the brand's market share.