Under what circumstances can Bojangles discontinue the operation of cooperative advertising programs within a DMA?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISOR'S RIGHT TO DISCONTINUE DMA ADVERTISING: Notwithstanding the provisions of this Agreement, Franchisor may in its discretion discontinue the operation of cooperative advertising programs within the DMA and require the return of all funds to each respective contributor to the extent these funds have not been expended or obligations created.
Mandatory discontinuance of cooperative advertising within a DMA may be
implemented by Franchisor upon written notice to each Member. If Franchisor shall require discontinuance of DMA advertising the Chairman shall promptly return all funds of DMA Members to each contributor except for those funds necessary to pay obligations incurred to pay for advertising within the DMA. Nothing in this Agreement shall limit Franchisor's rights under the terms of any franchise agreement or other agreement pertaining to any franchisee which is a Member under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles has the discretion to discontinue cooperative advertising programs within a designated market area (DMA). This means that Bojangles can choose to end these programs at any time.
The FDD specifies that if Bojangles decides to discontinue the DMA advertising, it must provide written notice to each member of the DMA. Following this notice, the chairman of the DMA is required to return all remaining funds to the contributors. The only exception to this return is the amount needed to cover any outstanding obligations incurred for advertising within the DMA.
This clause ensures that while Bojangles retains control over the advertising programs, franchisees are protected by the requirement to return unspent funds. However, franchisees should be aware that Bojangles can change the advertising strategy and discontinue local programs, potentially impacting their marketing efforts. Franchisees should inquire about the typical duration and frequency of changes to these cooperative advertising programs to better understand the potential impact on their business.