After termination of the Bojangles agreement, what is the geographic restriction preventing a franchisee from owning a fast food restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
ated 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.
- (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
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, for two years after the termination of the franchise agreement, a franchisee is restricted from engaging in any fast food restaurant business. 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. The restriction also extends to the designated market area where the Bojangles restaurant was situated. However, this restriction can be waived with written approval from Bojangles.
This non-compete clause prevents a former franchisee from leveraging the knowledge and experience gained while operating a Bojangles franchise to directly compete with the brand in close proximity. The dual restriction—both a specific radius and the broader designated market area—aims to protect Bojangles' market share and brand recognition. The clause is triggered regardless of the reason for termination, highlighting its importance to Bojangles.
For a prospective franchisee, this means that upon exiting the Bojangles system, their ability to operate a competing fast-food business is significantly limited for a period of two years. This could impact their future business plans and should be carefully considered, especially if their long-term strategy involves venturing into a similar business. The franchisee should seek legal counsel to fully understand the implications of this clause and explore options for negotiating its terms if necessary.