Under the Bojangles Advertising Expense Sharing Agreement, does the definition of 'Initial Franchisee' include entities partially owned by individuals who own other Bojangles franchises?

According to Bojangles's 2025 Franchise Disclosure Document, the definition of 'Initial Franchisee' within the context of the Advertising Expense Sharing Agreement does include entities partially owned by individuals who already own other Bojangles franchises. Specifically, the FDD states that an 'Initial Franchisee' can be a legal entity owned either entirely or partially by someone who already owns, either entirely or partially, another legal entity that is a Bojangles franchisee at the time the agreement is executed.

This definition is important because it clarifies who is subject to the terms of the Advertising Expense Sharing Agreement from the outset. It ensures that even if the ownership structure is complex, involving multiple entities with partial ownership, the obligations and benefits of the agreement still apply. This could impact advertising contributions, participation in DMA (Designated Market Area) advertising programs, and other related responsibilities.

For a prospective franchisee, this means that if they are entering into a Bojangles franchise agreement and already have some ownership stake in another Bojangles franchise through a different entity, they will likely be considered an 'Initial Franchisee' under this agreement. This status carries implications for their rights and responsibilities regarding advertising and marketing initiatives within their DMA. They should carefully review the full agreement to understand these obligations and how they might differ from those of a 'Subsequent Franchisee'.