If a Bojangles franchisee fails to comply with the confidentiality requirements, who is responsible for paying the court costs and reasonable attorney's fees incurred by Bojangles in obtaining specific performance or an injunction?

According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee fails to comply with the confidentiality requirements outlined in Paragraph IX of the franchise agreement, the franchisee is responsible for covering all court costs and reasonable attorney's fees incurred by Bojangles. This applies when Bojangles seeks specific performance or an injunction against the franchisee for violating these confidentiality requirements.

This provision means that a Bojangles franchisee must be extremely diligent in protecting the brand's confidential information, which includes processes, procedures, recipes, and formulas. Any breach, even unintentional, that leads to legal action by Bojangles to enforce confidentiality could result in the franchisee incurring significant legal expenses in addition to other potential damages.

Confidentiality clauses are standard in franchise agreements to protect the franchisor's proprietary information and maintain a competitive advantage. Franchisees should ensure they have adequate systems and training in place to safeguard this information and prevent unauthorized disclosure. This may include restricting access to sensitive documents, implementing cybersecurity measures, and educating employees about their confidentiality obligations.