What is a Bojangles franchisee required to do if litigation involving the Proprietary Marks is instituted or threatened?
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)
According to Bojangles's 2025 Franchise Disclosure Document, the agreement outlines specific actions a franchisee must take regarding litigation involving the Trade Dress, not the Proprietary Marks. If a Bojangles franchisee faces a lawsuit or threat of a lawsuit related to the Trade Dress, they are required to promptly inform Bojangles.
Bojangles retains control over the defense and expenses of any such litigation and has the discretion to settle the litigation on terms they deem appropriate. The franchisee is obligated to fully cooperate with Bojangles in defending or settling the litigation.
This arrangement is typical in franchising, as the franchisor has a vested interest in protecting its brand's image and associated trademarks. By retaining control over litigation, Bojangles ensures consistent legal strategy and minimizes potential damage to the brand. The franchisee's role is to provide full cooperation, which may include providing documentation, testimony, or other assistance as needed.
It is important to note that this clause specifically addresses litigation involving the Trade Dress. The FDD does not specify the franchisee's obligations in the event of litigation involving the Proprietary Marks. A prospective franchisee should seek clarification from Bojangles regarding the procedures to follow if litigation involving the Proprietary Marks is instituted or threatened.