In the event of a legal action between a Bojangles franchisee and franchisor, in which state must the action be brought?

According to Bojangles's 2025 Franchise Disclosure Document, any legal action initiated by either Bojangles or the franchisee against the other, whether in federal or state court, must be brought within the State of North Carolina. Both parties agree to waive any objections to personal jurisdiction or venue to ensure this provision is upheld. This requirement is part of the franchise agreement and applies to all legal disputes between Bojangles and its franchisees.

This clause means that a Bojangles franchisee, regardless of their location, may have to litigate any disputes with Bojangles in North Carolina. This could increase the franchisee's legal costs due to the need to hire local counsel in North Carolina and the expense of traveling to North Carolina for court proceedings. It also means the franchisee will be subject to North Carolina's court system and legal procedures.

However, an addendum to the Bojangles Franchise Agreement for North Dakota franchisees states that requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota is considered unfair, unjust, or inequitable. Therefore, the requirement to litigate in North Carolina may not apply to franchisees in North Dakota.

Franchisees should consult with a legal professional to fully understand the implications of this forum selection clause and how it may affect their rights and responsibilities under the franchise agreement, especially considering potential conflicts with state-specific franchise laws.