Under what agreement does BRI perform services for Bojangles franchisees?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
BRI provides services to Bojangles Restaurant franchisees on our behalf under a management agreement with us as further described below.
As of the Closing Date of the Securitization Transaction, BRI entered into a management agreement with us to act as our manager (the "Manager"). The primary responsibilities and activities of BRI as Manager include administering collections of payments due to us, managing our assets, and performing various franchising, marketing, development, real estate, intellectual property, operational oversight, and reporting services on our behalf, which includes support and services that are provided to Bojangles franchisees under their Development Agreements and Franchise Agreements. BRI also manages and operates any company-operated Restaurants that we or our affiliates own or may develop in the future. BRI also acts as our franchise sales broker. We pay management fees to BRI for these services. However, as the franchisor, we are responsible and accountable to you to make sure that all services we promise to perform under your Development Agreement and Franchise Agreement or other agreement you sign with us are performed in compliance with the applicable agreement, regardless of who performs these services on our behalf.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles Restaurants, Inc. (BRI) provides services to Bojangles franchisees under a management agreement with Bojangles Opco, LLC. As part of a securitization transaction on October 6, 2020, BRI entered into this management agreement to act as the manager for Bojangles. BRI's responsibilities include administering collections of payments, managing assets, and performing franchising, marketing, development, real estate, intellectual property, operational oversight, and reporting services on behalf of Bojangles. These services extend to supporting Bojangles franchisees under their Development Agreements and Franchise Agreements. BRI also manages company-operated restaurants and acts as a franchise sales broker. Bojangles pays management fees to BRI for these services.
This arrangement means that while Bojangles franchisees interact with BRI for various support functions, Bojangles remains ultimately responsible for ensuring all services promised under the franchise agreements are performed. This is an important distinction, as it clarifies that Bojangles cannot deflect responsibility for service failures onto BRI. The management agreement allows Bojangles to outsource key operational and support functions while retaining control and accountability.
For a prospective franchisee, this structure implies that while BRI is the primary point of contact for many services, the franchisee's legal and contractual relationship is with Bojangles. Any issues or concerns should be addressed to Bojangles, who is obligated to ensure BRI fulfills its duties under the management agreement. This setup is not uncommon in franchising, where franchisors often use affiliated entities to handle specific aspects of the business, such as real estate, supply chain management, or franchisee support.