Can Bojangles use franchisee contributions to the advertising fund to cover general operating expenses?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
All sums paid by Franchisee and other franchisees to the Fund shall not be used to defray any of Franchisor's general operating expenses except for such reasonable administrative expenses and overhead, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the Fund and advertising programs, including, without limitation, conducting market research, preparing marketing and advertising materials, and collecting and accounting for assessments for the Fund.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisee contributions to the advertising fund cannot be used to cover Bojangles's general operating expenses, with a specific exception. The funds are intended for advertising and promotion of the Bojangles system. These activities include television, radio, video, digital, print, and billboard advertising campaigns, as well as public relations, research, and the employment of advertising agencies. The fund also covers the preparation and provision of promotional brochures and point-of-purchase marketing materials for franchisees.
However, Bojangles can use franchisee contributions to cover reasonable administrative expenses and overhead that the company incurs while administering the advertising fund and its related programs. These allowable expenses are limited to activities such as conducting market research, preparing marketing and advertising materials, and managing the collection and accounting of advertising fund assessments.
This arrangement is fairly typical in franchising, where advertising funds are usually restricted to marketing-related activities but can include reasonable administrative costs. Franchisees should ensure they understand what specific expenses Bojangles considers 'reasonable administrative expenses' to maintain transparency and accountability in fund management.