If a Bojangles franchisee continues to operate another business after termination, what is prohibited regarding the use of proprietary marks?

According to Bojangles's 2025 Franchise Disclosure Document, a franchisee's right to use the Proprietary Marks is explicitly limited 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. Any unauthorized use of the Proprietary Marks after termination, including sublicensing, constitutes an infringement of Bojangles's rights and a default under the agreement. This means a former franchisee cannot legally continue to use the Bojangles trademarks, logos, or other identifying marks in any subsequent business venture.

This restriction is standard practice in franchising, as it protects the brand's identity and reputation. Bojangles needs to ensure consistent brand representation across all its locations and prevent any potential confusion among customers. By prohibiting the continued use of its Proprietary Marks after termination, Bojangles maintains control over its brand and prevents former franchisees from trading on the goodwill associated with the Bojangles name.

For a prospective Bojangles franchisee, this clause underscores the importance of adhering to the terms of the Franchise Agreement. It highlights that the right to use the Bojangles Proprietary Marks is contingent upon maintaining an active and compliant franchise. Understanding these limitations is crucial for franchisees to avoid potential legal issues and financial penalties associated with unauthorized use of the brand's intellectual property after the agreement ends.