Under what conditions does a DMA qualify as an 'Eligible DMA' for Bojangles advertising purposes?

According to Bojangles's 2025 Franchise Disclosure Document, an 'Eligible DMA' is defined as a Designated Market Area (DMA) that has two or more members. If a DMA initially has fewer than two members upon the execution of the Advertising Expense Sharing Agreement, it will become an Eligible DMA when it reaches the threshold of having at least two members.

This definition is important for Bojangles franchisees because it determines whether a DMA can carry out cooperative advertising functions. DMAs that are not 'Eligible DMAs' cannot participate in these activities until they meet the minimum membership requirement. Franchisees operating restaurants in non-eligible DMAs do not have any duties or obligations related to DMA advertising until their restaurants are transferred to an Eligible DMA.

The requirement of having at least two members ensures that there is sufficient participation and funding for effective cooperative advertising efforts within the DMA. This also prevents a single franchisee from bearing the entire responsibility for advertising in a particular market area. The DMA structure allows Bojangles franchisees to pool their resources and benefit from broader advertising exposure, potentially increasing sales and profitability for their restaurants.

Prospective franchisees should inquire about the current DMA status in their target market and the number of existing members. Understanding the DMA dynamics and eligibility is crucial for planning advertising strategies and assessing potential costs and benefits associated with cooperative advertising efforts.