Does the Bojangles franchise agreement allow for the recovery of punitive or exemplary damages in the event of a dispute?

According to Bojangles's 2025 Franchise Disclosure Document, the franchise agreement includes a mutual waiver of punitive or exemplary damages. This means that in the event of a dispute between Bojangles and a franchisee, neither party can seek these types of damages from the other. Instead, both Bojangles and the franchisee are limited to recovering only the actual damages they sustained. This provision aims to limit the potential financial exposure of both parties in case of a legal conflict.

This waiver is intended to apply to the fullest extent permitted by law, suggesting that it may not be enforceable in jurisdictions where such waivers are prohibited or restricted. Franchise agreements often include clauses that waive certain types of damages to provide more predictable financial outcomes in disputes. However, franchisees should be aware of the implications of waiving the right to seek punitive damages, as these damages can sometimes be substantial in cases of egregious misconduct.

Additionally, the agreement specifies that parties can only recover damages sustained by them. This reinforces the limitation to actual losses incurred, preventing speculative or inflated damage claims. Prospective Bojangles franchisees should carefully consider this waiver and consult with legal counsel to understand its potential impact on their rights and remedies in the event of a dispute with the franchisor.