Can Bojangles develop other systems using the same or similar principal trademarks and grant licenses or franchises without providing any rights to existing Bojangles franchisees?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 13 — TRADEMARKS (FDD pages 50–52)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles retains significant rights regarding its principal trademarks. Specifically, Bojangles has the right to develop and establish other systems that utilize the same or similar principal trademarks. Furthermore, Bojangles can grant licenses or franchises for these systems without providing any rights to existing Bojangles franchisees. This means that a franchisee's rights to use the trademarks are non-exclusive, and Bojangles can expand its brand through different avenues without necessarily benefiting existing franchisees. This is a fairly standard practice in franchising, as franchisors often seek to diversify and grow their brand through various channels. However, it is important for franchisees to understand that their rights are limited to the specific franchise agreement and location.
This aspect of the franchise agreement has important implications for prospective franchisees. While franchisees are granted a license to use Bojangles's trademarks for their specific restaurant, this license does not prevent Bojangles from creating competing systems or granting additional licenses to others. This could potentially lead to market saturation or competition from other Bojangles-branded businesses that are not part of the traditional franchise network. Franchisees should consider this non-exclusive right when evaluating the potential risks and rewards of investing in a Bojangles franchise.
Bojangles also reserves 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 its sole discretion and will have no obligation or liability to you as a result of any modification, discontinuance or substitution. This means that Bojangles can change its branding at any time, and franchisees must adapt to these changes without any recourse. Franchisees bear the risk of rebranding and changes to the trademarks.
In summary, while the Franchise Agreement grants franchisees the right to use Bojangles's trademarks, these rights are non-exclusive and subject to change. Bojangles retains considerable control over its trademarks and can expand its brand in ways that may not directly benefit existing franchisees. Prospective franchisees should carefully consider these factors and seek clarification from Bojangles regarding its plans for future brand development and trademark usage.