Does the Bojangles Franchise Agreement allow for punitive or exemplary damages in the event of a dispute between the parties?

According to the 2025 Bojangles Franchise Disclosure Document, the franchise agreement includes a waiver regarding punitive or exemplary damages. Specifically, both Bojangles and the franchisee agree that in the event of a dispute, neither party will seek punitive or exemplary damages from the other. Instead, both parties are limited to recovering only the actual damages they sustained. This mutual waiver is intended to limit the financial exposure of both parties in case of legal disputes.

This clause means that if a franchisee believes Bojangles has breached the franchise agreement, they can only recover the direct financial losses they've experienced as a result. They cannot seek additional damages intended to punish Bojangles for their actions. Similarly, Bojangles is limited in its ability to claim punitive damages from a franchisee. This can be a significant factor for prospective franchisees to consider, as it sets a clear boundary on potential financial recoveries in legal disputes.

Such waivers are relatively common in franchise agreements. They aim to create a more predictable legal landscape and prevent excessive damage awards that could arise from punitive claims. While this waiver may limit a franchisee's potential upside in a lawsuit, it also protects them from the risk of facing substantial punitive damages should Bojangles bring a claim against them. Franchisees should carefully weigh the implications of this clause and consider consulting with legal counsel to fully understand their rights and obligations under the franchise agreement.