After the Bojangles franchise agreement expires or terminates, is a franchisee permitted to offer for sale food or drink products prepared using Bojangles' recipes or formulas at any location other than the Restaurant operated during the agreement's term?
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 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 XI. 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 XI.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, a franchisee is restricted from offering for sale any food or drink products prepared using Bojangles' procedures, processes, techniques, recipes, or formulas at any location other than the Restaurant operated during the term of the agreement. This restriction applies both during the term of the agreement and after its expiration or earlier termination. This means that once the franchise agreement ends, a former franchisee cannot use Bojangles' proprietary recipes or methods to sell similar products at a different location.
This restriction is in place to protect Bojangles' proprietary information and maintain the brand's competitive advantage. The franchise agreement specifies that Bojangles will provide franchisees with access to training and proprietary information, including recipes and formulas. Franchisees acknowledge that they must not disclose this information to third parties or use it for any purpose other than operating the Bojangles restaurant.
Failure to comply with these requirements could result in irreparable injury to Bojangles, and the franchisee may be liable for court costs and reasonable attorneys' fees incurred by Bojangles in obtaining specific performance or an injunction against the violation. This clause underscores the importance Bojangles places on protecting its intellectual property and trade secrets, which are crucial to the brand's identity and success. Prospective franchisees should carefully consider these post-termination restrictions and their potential impact on future business ventures.
This type of restriction is common in the franchise industry, particularly in the food service sector, where recipes and operational methods are key differentiators. Franchise agreements often include clauses that prevent franchisees from using the franchisor's proprietary information to compete with the brand, even after the franchise relationship has ended. This helps to maintain the integrity and consistency of the brand across all locations and protects the franchisor's investment in developing unique products and processes.