What is the Bojangles franchisee's responsibility if litigation involving the Proprietary Marks is instituted or threatened against them?

According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee faces litigation or a threat of litigation related to the Proprietary Marks, they are required to promptly notify Bojangles. After notification, Bojangles assumes control over the defense and covers the expenses associated with the litigation. However, Bojangles retains the right to settle or otherwise resolve the litigation as it sees fit.

This arrangement is beneficial for the franchisee because Bojangles, as the owner of the Proprietary Marks, has a vested interest in protecting them and possesses the expertise to handle such legal matters. By assuming the defense, Bojangles relieves the franchisee of the financial burden and the responsibility of managing complex legal proceedings. This is a fairly common arrangement in franchising, as franchisors typically want to control the defense of their trademarks.

However, franchisees must recognize that Bojangles has the authority to settle the litigation, which may or may not align perfectly with the franchisee's preferred outcome. While Bojangles will likely act in the best interest of the brand, franchisees should stay informed about the progress of the litigation and understand the potential implications of any settlement decisions. Franchisees should maintain open communication with Bojangles to voice any concerns and ensure their interests are considered during the litigation process.