After termination of the Bojangles agreement, what is the geographic restriction on owning a competing restaurant that sells fried chicken?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) During the continuing uninterrupted period commencing upon the expiration or termination of this Agreement, regardless of the cause for termination, and continuing for two (2) years thereafter, 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, own, maintain, advise, help, invest in, make loans to, be employed by, be the landlord of, engage in, or have any interest in:
(a) Any restaurant business which: (i) 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 as of the termination or expiration of this Agreement, and (ii) is located within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction or under construction as of the termination or expiration of this Agreement; or
(b) Any fast food restaurant business which is located (i) within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction, or under construction as of the termination or expiration of this Agreement, or (ii) within the designated market area within which the Restaurant is situated.
B.
Paragraph XVII.A. shall not apply to ownership by Franchisee of less than two percent (2%) beneficial interest in the outstanding equity securities of any corporation which is registered under the Securities Exchange Act of 1934.
- C.
The parties agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, following the expiration or termination of the franchise agreement, a franchisee faces certain geographic restrictions regarding involvement with competing restaurant businesses. For a period of two years after the agreement ends, the franchisee (including their shareholders or members) cannot own, maintain, advise, invest in, or be employed by any restaurant that competes with Bojangles or sells fried chicken, biscuits, or biscuit sandwiches. This restriction applies within a 10-mile radius of the former Bojangles restaurant or any other Bojangles location that is open, planned for construction, or under construction at the time of termination.
In addition to the 10-mile radius, the franchisee is also restricted from engaging in any fast-food restaurant business within the designated market area where the Bojangles restaurant was located. This means that the non-compete extends beyond a simple radius and covers the broader market area that Bojangles considers its territory. These restrictions are in place regardless of the reason for the termination of the agreement.
There is an exception to these restrictions: a franchisee can own less than 2% of the equity securities of a publicly traded corporation registered under the Securities Exchange Act of 1934 without violating the non-compete clause. The FDD specifies that each of these covenants is independent of any other covenant or provision within the agreement, meaning that a breach of one covenant does not excuse performance under another. This ensures that Bojangles can enforce these non-compete provisions to protect its market share and brand integrity.
Prospective franchisees should carefully consider these post-termination restrictions, as they could significantly limit their business opportunities in the restaurant industry for two years after leaving the Bojangles system. It is important to understand the exact boundaries of the designated market area and to assess the potential impact on future business ventures.