During the term of the Bojangles franchise agreement, is a franchisee prohibited from diverting business from their Bojangles restaurant to a competitor?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
H. Franchisee shall comply with any surviving covenants contained in Paragraph XVIII. of this Agreement.
XVIII. 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 the 2025 Bojangles Franchise Disclosure Document, franchisees are restricted from diverting business to competitors during the term of the franchise agreement. Specifically, franchisees are prohibited from diverting or attempting to divert any business or customer of the Bojangles restaurant to any competitor through direct or indirect means. This includes any action that could be injurious or prejudicial to the goodwill associated with Bojangles' proprietary marks, trade dress, and the Bojangles system.
This restriction is in place to protect the Bojangles brand and maintain the integrity of the franchise system. By preventing franchisees from diverting business to competitors, Bojangles aims to ensure that each franchise location contributes to the overall success and reputation of the brand. This covenant applies to the franchisee and their shareholders or members, reinforcing the commitment to the Bojangles system.
Furthermore, during the term of the agreement, franchisees are also restricted from owning, maintaining, advising, or investing in any restaurant business that competes with Bojangles or sells similar menu items within a specified radius. This radius is set at ten miles from the franchisee's Bojangles restaurant or any other Bojangles restaurant that is open, planned for construction, or under construction. This non-compete provision extends to any fast-food restaurant business within the same radius or within the designated market area where the franchisee's restaurant is located.
These covenants are designed to protect Bojangles' market position and prevent franchisees from using the knowledge and resources gained from the franchise to benefit competing businesses. Franchisees should be aware of these restrictions and ensure full compliance to avoid potential breaches of the franchise agreement.