If a Bojangles franchisee fails to comply with the requirements regarding proprietary information, is the franchisee responsible for covering Bojangles' court costs and attorney's fees incurred in obtaining specific performance or an injunction against the violation?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Franchisee acknowledges that any failure to comply with the requirements of this Paragraph IX. will cause irreparable injury to Franchisor, and Franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in obtaining specific performance of, or an injunction against violation of, the requirements of this Paragraph IX.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee is responsible for covering Bojangles's court costs and reasonable attorney's fees if they fail to comply with requirements regarding proprietary information, specifically as outlined in Paragraph IX of the franchise agreement. This includes instances where Bojangles seeks specific performance or an injunction against the franchisee to enforce these requirements. Proprietary information includes, but is not limited to, recipes, formulas, the Manual, logos, designs, trademarks, and trade names.
This provision means that if a Bojangles franchisee violates the terms of the franchise agreement related to proprietary information, they could face significant financial penalties beyond just the cost of damages caused by the violation. The franchisee would also be responsible for Bojangles's legal expenses in pursuing the matter in court. This could include actions taken by Bojangles to stop the franchisee from further unauthorized use or disclosure of confidential information.
For a prospective Bojangles franchisee, this underscores the importance of understanding and strictly adhering to the franchise agreement's stipulations regarding proprietary information. Franchisees should ensure that their employees are also aware of these requirements and take appropriate measures to safeguard confidential information. Failure to do so could result in substantial legal costs in addition to other potential damages or penalties.