factual

Within what distance from a Bojangles restaurant (open, planned, or under construction) is a franchisee restricted from operating a competing restaurant business after the termination or expiration of the Bojangles franchise agreement?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

ity company, own, maintain, advise, help, invest in, make loans to, be employed by, be the landlord of, engage in, or have any interest in:

  • (a) Any restaurant business which: (i) competes with any Bojangles restaurant or which sells fried chicken, biscuits and/or biscuit sandwiches, or other items which are featured menu items at Bojangles restaurants as of the termination or expiration of this Agreement, and (ii) is located within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction or under construction as of the termination or expiration of this Agreement; or
  • (b) Any fast food restaurant business which is located (i) within ten (10) miles from the Restaurant or any Bojangles restaurant that is open, planned for construction, or under construction as of the termination or expiration of this Agreement, or (ii) within the designated market area within which the Restaurant is situated.
  • B. Paragraph XVI.A. shall not apply to ownership by Franchisee of less than two percent (2%) beneficial interest in the outstanding equity securities of any corporation which is registered under the Securities Exchange Act of 1934.
  • C. The parties agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement. If all or any portion of a covenant in this Paragraph XVI.

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, a franchisee is restricted from operating a competing restaurant business within a certain distance of a Bojangles restaurant after the termination or expiration of the franchise agreement. Specifically, this restriction applies to any restaurant that competes with Bojangles or sells similar items like fried chicken, biscuits, or biscuit sandwiches.

The restricted area extends to a ten-mile radius from the franchisee's Bojangles restaurant or any other Bojangles restaurant that is open, planned for construction, or under construction at the time of termination or expiration. Additionally, the restriction applies to any fast food restaurant business located within the same ten-mile radius or within the designated market area where the franchisee's restaurant is situated.

This means that after the franchise agreement ends, a former Bojangles franchisee cannot operate a competing restaurant within ten miles of any existing or planned Bojangles location, or within the designated market area. This covenant remains in effect for a period of two years after the termination or expiration of the agreement. This restriction is designed to protect Bojangles's market share and prevent former franchisees from directly competing with the brand shortly after leaving the system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.