If a Bojangles franchisee fails to comply with the transfer requirements outlined in Paragraph XIII, is the franchisee responsible for Bojangles' court costs and attorney's fees incurred in obtaining specific performance or an injunction?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Franchisee acknowledges that any failure to comply with the requirements of this Paragraph XIII. will cause Franchisor irreparable injury, for which no adequate remedy at law may be available, 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 XIII.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee acknowledges that failure to comply with the requirements of Paragraph XIII, which addresses transfer requirements, will cause irreparable injury to Bojangles. As a result, the franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Bojangles in obtaining specific performance of, or an injunction against violation of, the requirements of Paragraph XIII. This means if a franchisee violates the transfer requirements, they will be responsible for covering Bojangles' legal expenses in pursuing enforcement.
This provision highlights the importance Bojangles places on controlling the transfer of its franchises and ensuring compliance with the established procedures. It serves as a deterrent against unauthorized or non-compliant transfers, as the franchisee would face potentially significant financial consequences in addition to other remedies Bojangles may pursue.
For a prospective franchisee, this underscores the need to fully understand and adhere to the transfer requirements outlined in Paragraph XIII of the franchise agreement. Failure to do so could result in substantial legal costs, regardless of the outcome of any legal action. It is crucial to seek legal counsel and carefully review the transfer provisions before entering into a franchise agreement with Bojangles.