After the Bojangles franchise agreement expires or terminates, is the franchisee allowed to sell food or drink products prepared using Bojangles' recipes or formulas at any location other than the Restaurant operated under the agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Franchisee hereby acknowledges that pursuant to this Agreement, Franchisor will provide Franchisee with access to and training in processes and procedures of a proprietary nature and will provide Franchisee with access to and the right to use recipes and formulas, the Manual, logos, designs, trademarks, trade names and other proprietary information in connection with Franchisee's development and operation of the Restaurant. Franchisee acknowledges and agrees that Franchisee shall not at any time, whether during the term of this Agreement or after its expiration or earlier termination, disclose any information obtained through such training or from any materials provided by Franchisor to Franchisee and pertaining to the Bojangles System to any third party other than employees of Franchisee directly involved in the operations of the Restaurant. Further, Franchisee agrees that during the term of this Agreement and after its expiration or earlier termination, it shall not use any of such information or proprietary marks, including but not limited to any processes, procedures, recipes and formulas, for any purpose other than the operation of the Restaurant and will take all steps necessary to prevent any other use of them. Without limiting the foregoing, Franchisee specifically agrees that it shall not during the term of this agreement or after its expiration or earlier termination, offer for sale at any location, other than during the term of this Agreement the Restaurant being operated at that time pursuant to this Agreement, any food or drink products prepared using in whole or part the procedures, processes, techniques, recipes or formulas provided by Franchisor to Franchisee.
- C. Franchisee acknowledges that any failure to comply with the requirements of this Paragraph IX. will cause irreparable injury to Franchisor, and Franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in obtaining specific performance of, or an injunction against violation of, the requirements of this Paragraph IX.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees are restricted from selling food or drink products prepared using Bojangles' recipes or formulas at any location other than the Restaurant operated under the agreement, both during the term of the agreement and after its expiration or termination.
This restriction means that a former Bojangles franchisee cannot use the brand's proprietary information, such as recipes and formulas, to sell similar products at a different establishment. This is a standard practice in franchising to protect the brand's competitive advantage and maintain consistency across all franchise locations.
The FDD specifies that failure to comply with this requirement could result in irreparable injury to Bojangles, and the franchisee may be liable for court costs and reasonable attorney's fees incurred by Bojangles in enforcing this provision. This underscores the importance of adhering to the terms of the franchise agreement regarding the use of proprietary information, even after the agreement has ended.
This provision aims to prevent franchisees from leveraging Bojangles's confidential information and brand recognition to compete unfairly with the franchisor or other franchisees after the agreement concludes. Prospective franchisees should carefully consider these post-termination restrictions and how they might impact their future business endeavors.