Under what conditions can Bojangles change the DMA membership nature of Express Units?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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- BOJANGLES EXPRESS UNIT: As long as a DMA contains only Bojangles Express units ("Express Units") (as determined by the form of Franchise Agreement executed by a Franchisee) each Express Unit shall have full voting rights and DMA Membership as provided in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the nature of DMA (Designated Market Area) membership for Express Units can change under specific conditions. Initially, if a DMA contains only Bojangles Express Units, each unit has full voting rights and DMA membership. However, if a DMA includes both Express Units and free-standing independent units (Non-Express Units), Bojangles has the option to modify the DMA membership of the Express Units.
To change the DMA membership, Bojangles must provide written notice to all DMA members. This change involves requiring Express Units to contribute to the DMA membership at the same level as other DMA members, although the contribution cannot exceed two percent (2%) of the Express Unit's gross sales. In return for this contribution, Express Unit members are granted one-half vote for each Express Unit they operate within the DMA.
Alternatively, instead of DMA membership, Bojangles may require Express Units to pay up to two percent (2%) of gross sales directly to Bojangles. This payment is intended to offset Bojangles's spending within the DMA. However, in this scenario, the Express Units would not be admitted as voting members of the DMA. This provides Bojangles with flexibility in managing advertising contributions and DMA membership based on the composition of units within a specific market area.