Who bears the expense of litigation involving the principal trademarks against a Bojangles franchisee?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
s that are material to any franchise.
In the event that litigation involving the principal trademarks is instituted or threatened against you, and you promptly notify us, we will conduct the defense and bear the expense of such litigation, and will be entitled to settle or otherwise dispose of the litigation on terms which, in our sole discretion, we may decide. You must cooperate fully with us in defending or settling such litigation.
The right to use the principal trademarks granted in the Franchise Agreement is non-exclusive. We, therefore, have and retain the rights, among others:
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- To use the principal trademarks in connection with selling products and services;
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- To grant other licenses for the principal trademarks, in addition to those licenses already granted to existing franchisees; and
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- To develop and establish other systems using the same or similar principal trademarks, or any other principal trademarks, and to grant licenses or franchises thereto without providing any rights therein to you.
There is no currently effective determination of the United States Patent and Trademark Office, Trademark Trial and Appeal Board, the trademark administrator of any state, or any court, nor any pending interference, opposition, or cancellation proceeding, nor any pending material litigation involving the trademarks, service marks, trade names, logotypes, or other commercial symbols which are relevant to their use in the state in which any Restaurant is to be located or elsewhere.
There are no superior prior rights or infringing uses actually known to us that could materially affect your use of the principal trademarks in the state in which any Restaurant is to be located. We will take all steps reasonably necessary to preserve and protect our ownership in and validity of the principal trademarks.
You must promptly notify us of any suspected unauthorized use of the principal trademarks and of any litigation involving the principal trademarks that is threatened or instituted against you. We are not obligated by the Franchise Agreement, nor otherwise, to protect any rights granted to you to use the principal trademarks or to protect you against claims of infringement or unfair competition with respect to them. We have the sole right to direct and control any administrative proceeding or litigation involving the principal trademarks, including any settlement.
We reserve the right to modify or discontinue principal trademarks or substitute different principal trademarks for use in identifying the Bojangles System and the businesses operating under it at our sole discretion and will have no obligation or liability to you as a result of any modification, discontinuance or substitution.
Source: Item 13 — TRADEMARKS (FDD pages 50–52)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles will conduct the defense and bear the expense of litigation if a franchisee is threatened with or involved in litigation regarding the principal trademarks, provided the franchisee promptly notifies Bojangles. Bojangles also retains the right to settle or otherwise dispose of the litigation on terms they decide at their sole discretion. The franchisee is required to cooperate fully with Bojangles in defending or settling any such litigation.
This arrangement is fairly typical in franchising, as franchisors like Bojangles have a strong interest in protecting their trademarks, which represent the brand's identity and reputation. By assuming responsibility for trademark litigation, Bojangles aims to ensure consistent and effective defense of its brand. This also protects franchisees from potentially significant legal expenses and allows them to focus on operating their restaurants.
However, it's important to note that Bojangles is not obligated to protect the franchisee against claims of infringement or unfair competition related to the trademarks. Bojangles also retains the sole right to control any administrative proceeding or litigation, including settlements. Furthermore, Bojangles reserves the right to modify or discontinue trademarks, substituting different trademarks without liability to the franchisee. This highlights the importance of the franchisee's role in promptly reporting any suspected unauthorized use of the trademarks or any litigation they face.
In summary, while Bojangles takes on the primary responsibility for trademark litigation, franchisees must be proactive in reporting any potential issues and cooperate fully in the legal process. Franchisees should be aware of Bojangles's rights to control the litigation and modify trademarks, as these decisions could impact their business.