What is a Bojangles franchisee's obligation if litigation involving the Proprietary Marks is threatened?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) In the event that litigation involving the Proprietary Marks 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 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, if a franchisee faces threatened or actual litigation involving Bojangles' Proprietary Marks, the franchisee must promptly notify Bojangles. Bojangles will then manage the defense and cover the expenses of the litigation. However, Bojangles retains the right to settle or otherwise resolve the litigation as it deems appropriate. The franchisee is obligated to fully cooperate with Bojangles in defending or settling any such litigation. This includes providing necessary information, documentation, and assistance as requested by Bojangles.
This clause is important for prospective franchisees because it outlines the roles and responsibilities of both the franchisee and franchisor in the event of a legal challenge to the brand's trademarks. By retaining control over the litigation, Bojangles ensures a consistent and strategic approach to protecting its brand. This also relieves the franchisee of the financial burden and direct management of complex legal proceedings, which can be a significant advantage.
However, franchisees should note that Bojangles has the sole discretion to decide on the terms of any settlement. While franchisees must cooperate, they do not have direct control over the outcome of the litigation. Franchisees should seek clarification from Bojangles regarding the types of cooperation expected and the potential implications of settlement decisions on their business. Understanding these obligations is crucial for any prospective Bojangles franchisee to ensure they are prepared to handle such situations effectively.