What is a Bojangles franchisee required to do if litigation involving the Proprietary Marks is instituted or threatened against them?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) In the event that litigation involving the Trade Dress is instituted or threatened against Franchisee, Franchisee shall promptly notify Franchisor.
Franchisor shall conduct the defense, and bear the expense of such litigation, but shall be entitled to settle or otherwise dispose of the litigation on terms which, in its sole discretion, it may decide upon.
Franchisee shall cooperate fully with Franchisor in defending or settling such litigation.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
The 2025 Bojangles Franchise Disclosure Document (FDD) does not explicitly state the franchisee's responsibilities regarding litigation involving the Proprietary Marks. However, it does outline the franchisee's duty in the event of litigation involving the Trade Dress.
According to the FDD, if litigation involving the Trade Dress is instituted or threatened against a Bojangles franchisee, the franchisee is required to promptly notify Bojangles. Bojangles will then conduct the defense and bear the expenses of the litigation. Bojangles also has the right to settle or otherwise dispose of the litigation on terms it deems appropriate. The franchisee is obligated to cooperate fully with Bojangles in defending or settling the litigation.
Because the FDD excerpt does not specify the franchisee's obligations in the event of litigation regarding the Proprietary Marks, it would be prudent for a prospective Bojangles franchisee to seek clarification from the franchisor on this matter. Understanding the franchisee's responsibilities and potential liabilities in such situations is crucial for making an informed investment decision.