factual

What happens to a Bojangles franchisee's right to use the Proprietary Marks upon expiration or termination of the Franchise Agreement?

Bojangles Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) Franchisee's right to use the Proprietary Marks is limited to the term of this Agreement and shall automatically cease upon the expiration or earlier termination of this Agreement and is limited to such uses as are authorized under this Agreement, and any unauthorized use thereof, including, but not limited to, sublicensing a use of the Proprietary Marks, shall constitute an infringement of Franchisor's rights and a default under this Agreement;

  • (6) During the term of this Agreement and continuing after its expiration or earlier termination, Franchisee shall not use the Proprietary Marks to incur any obligation or indebtedness on behalf of Franchisor;

  • (7) During the term of this Agreement and continuing after its expiration or earlier termination, Franchisee shall not use the Proprietary Marks as part of its corporate or other legal name;

  • (8) Franchisee shall comply with Franchisor's instructions in filing and maintaining the requisite trade name or fictitious name registrations, and shall execute any documents deemed necessary by Franchisor or its counsel to obtain protection for the Proprietary Marks or to maintain their continued validity and enforceability; and

  • (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.

  • C.

Franchisee expressly understands and acknowledges that:

  • (1) Franchisor is the owner of all right, title and interest in and to the Proprietary Marks and the goodwill associated with and symbolized by them;

  • (2) The Proprietary Marks are valid and serve to identify the System and those who are authorized to operate under the System;

  • (3) Franchisee shall not directly or indirectly contest the validity or Franchisor's ownership of the Proprietary Marks;

  • (4) Franchisee's use of the Proprietary Marks pursuant to this Agreement does not give Franchisee any ownership interest or other interest in or to the Proprietary Marks, except pursuant to the license granted by this Agreement;

  • (5) Any and all goodwill arising from Franchisee's use of the Proprietary Marks in its franchised operation under the System shall inure solely and exclusively to Franchisor's benefit, and upon expiration or termination of this Agreement and the license herein granted, no monetary amount shall be assigned to Franchisee as attributable to any goodwill associated with Franchisee's use of the System or the Proprietary Marks; and

Source: Item 22 — CONTRACTS (FDD page 82)

What This Means (2025 FDD)

According to Bojangles's 2025 Franchise Disclosure Document, a franchisee's right to use the Proprietary Marks is explicitly tied to the term of the Franchise Agreement. Upon expiration or earlier termination of the agreement, the franchisee's right to use the Proprietary Marks automatically ceases. This means the franchisee can no longer use the Bojangles trademarks, logos, or other identifying marks in any capacity.

This cessation of rights extends to all uses, including operating the franchised business and advertising. Any unauthorized use of the Proprietary Marks after the agreement's expiration or termination, such as sublicensing, constitutes an infringement of Bojangles's rights and a default, potentially leading to legal action.

Moreover, the franchisee is prohibited from using the Proprietary Marks to incur any obligation or indebtedness on behalf of Bojangles, even after the agreement's expiration or termination. Similarly, the franchisee cannot use the Proprietary Marks as part of its corporate or other legal name after the agreement ends. This ensures a clear separation between the franchisee's independent business activities and the Bojangles brand.

The FDD also clarifies that any goodwill arising from the franchisee's use of the Proprietary Marks during the franchise term accrues solely to the benefit of Bojangles. Upon expiration or termination, the franchisee will not receive any monetary compensation for goodwill associated with their use of the Bojangles system or Proprietary Marks. This is a standard practice in franchising, as the brand and its associated goodwill are considered the franchisor's intellectual property.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.