What exceptions exist regarding confidential information that a Bojangles franchisee is not required to keep confidential?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
The covenants in Sections 2.A and 2.B shall not apply to any of the following: (1) disclosure pursuant to a valid order of a court or other governmental body, provided that Recipient shall first have given written notice to Franchisor and shall give Franchisor a reasonable opportunity to interpose an objection or obtain a protective order; (2) disclosure in litigation related to the enforcement of this Agreement, the Franchise Agreement, and/or any other Franchise or Development Agreement between Franchisee and Franchisor, subject to any protective order that may be entered by the court; or (3) disclosure of the operating results and financial performance of Franchisee's Bojangles restaurants.
All Confidential Information disclosed in accordance with Sections 2.D.(1) and (2) may only be provided by Recipient under a protective order entered by the applicable court or governmental body.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, there are specific exceptions to the confidentiality requirements for franchisees. A Bojangles franchisee is not bound by confidentiality regarding disclosures that occur under the following circumstances:
First, if a valid order from a court or governmental body compels disclosure, the franchisee is permitted to disclose confidential information, provided they give Bojangles written notice and a reasonable opportunity to object or seek a protective order. This ensures compliance with legal obligations while also allowing Bojangles to protect its information where possible.
Second, disclosure is allowed in litigation related to the enforcement of the Franchise Agreement, any other Franchise or Development Agreement between the franchisee and Bojangles, or the agreement itself. However, such disclosures are subject to any protective order issued by the court to maintain confidentiality to the greatest extent possible.
Third, a franchisee can disclose the operating results and financial performance of their Bojangles restaurants. This exception likely allows franchisees to discuss their business performance with potential investors or lenders, which is a common practice in franchising. However, all confidential information disclosed under these exceptions must be done so under a protective order from the relevant court or governmental body.