Does the Bojangles franchise agreement allow franchisees to seek punitive or exemplary damages from Bojangles in the event of a dispute?

According to Bojangles's 2025 Franchise Disclosure Document, franchisees are restricted from seeking punitive or exemplary damages from Bojangles in the event of a dispute. The franchise agreement explicitly states that both parties waive any right or claim to punitive or exemplary damages against each other. Instead, the agreement limits each party's recovery to actual damages sustained. This waiver is applicable to the fullest extent permitted by law.

This provision means that a franchisee cannot seek additional damages beyond the direct financial losses they have incurred. Punitive or exemplary damages are typically awarded to punish a party for egregious misconduct and to deter similar behavior in the future. By waiving these types of damages, the Bojangles franchise agreement limits the potential financial exposure of both the franchisee and franchisor in case of a dispute.

Such waivers are relatively common in franchise agreements. Franchise systems often aim for predictability and consistency in legal disputes. Limiting damages to actual losses can help control litigation costs and reduce uncertainty. However, franchisees should carefully consider the implications of this waiver, as it could limit their ability to obtain full compensation if Bojangles engages in misconduct that causes significant harm beyond direct financial losses.