Under a Bojangles Development Agreement, what is the territory in which a developer is allowed to develop Restaurants called?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
If we sign a Development Agreement with you, we will grant you a territory in which you are allowed to develop Restaurants. The territory is referred to as an Assigned Area in the Development Agreement. The Assigned Area will be described by street boundaries or political subdivisions or may designate certain locations, intersections or market areas. The Assigned Area will be negotiated individually with you. The Assigned Area and the individual franchise locations will be based upon relevant factors including population, traffic patterns, trade areas and proximity to business generators such as schools and hospitals, and your ability to develop the Assigned Area in a timely manner. You must always obtain our approval for each specific Restaurant location within the Assigned Area. If we approve the location, a franchise is granted for that specific location only and we will sign a Franchise Agreement with you for that location. You do not receive any territorial rights under the Franchise Agreement.
Since we retain certain rights mentioned below within your Assigned Area, you will not receive an exclusive territory; you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Your right to develop Restaurants in the Assigned Area will be for a limited time and be subject to your compliance with the terms of your Development Agreement and our retained rights. After the expiration or early termination of the Development Agreement you will no longer have rights to develop in the Assigned Area. You do not have the right to open and operate any Restaurants in excess of the number of Restaurants specified in the Development Agreement. The Development Agreement does not grant options, rights of first refusal or similar rights to acquire additional franchises beyond those listed in the development schedule.
Source: Item 12 — TERRITORY (FDD pages 49–50)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a Development Agreement is signed, Bojangles grants the developer a territory referred to as an "Assigned Area" in which they are allowed to develop Restaurants. This Assigned Area is individually negotiated and described by street boundaries, political subdivisions, or may designate certain locations, intersections, or market areas. The specific size and characteristics of an Assigned Area depend on factors like population, traffic patterns, proximity to business generators (schools, hospitals), and the developer's capacity to develop the area in a timely manner.
It is important to note that while a franchisee is granted an Assigned Area, Bojangles retains certain rights within that area. This means the territory is not exclusive, and franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution that Bojangles controls. The right to develop Restaurants in the Assigned Area is also limited in time and subject to compliance with the Development Agreement.
Furthermore, the FDD states that after the Development Agreement expires or is terminated early, the developer loses all rights to develop in the Assigned Area. The franchisee cannot open and operate more Restaurants than specified in the Development Agreement, and the agreement does not grant any options or rights to acquire additional franchises beyond the development schedule. Franchisees must always obtain Bojangles's approval for each specific Restaurant location within the Assigned Area. If approved, a franchise is granted for that specific location only, and a Franchise Agreement is signed for that location. No territorial rights are received under the Franchise Agreement.