If a Bojangles franchisee fails to comply with the transfer requirements in Paragraph XIII, does the franchisee agree to pay Bojangles' court costs and attorney's fees?

According to Bojangles's 2025 Franchise Disclosure Document, a franchisee acknowledges that failure to comply with the transfer requirements outlined in Paragraph XIII will cause irreparable injury to Bojangles. Consequently, the franchisee agrees to cover all court costs and reasonable attorney's fees incurred by Bojangles to enforce compliance or seek an injunction against any violations of Paragraph XIII.

This provision means that if a Bojangles franchisee attempts to transfer their franchise in a way that doesn't meet the franchisor's requirements (as detailed in Paragraph XIII, which is not provided in this document), Bojangles can take legal action. The franchisee would then be responsible for Bojangles' legal expenses, including court costs and attorney's fees. This could include actions like seeking specific performance (forcing the franchisee to comply with the transfer requirements) or obtaining an injunction (a court order preventing the franchisee from violating the requirements).

Such clauses are relatively standard in franchise agreements. They protect the franchisor's interests by ensuring franchisees adhere to the established transfer protocols. These protocols are in place to maintain brand consistency and ensure that any new franchisee meets Bojangles' standards. The franchisee bears the financial risk of non-compliance, which incentivizes adherence to the transfer requirements.

Prospective franchisees should carefully review Paragraph XIII of the franchise agreement to fully understand the transfer requirements and avoid potential legal liabilities. Understanding these requirements is crucial for managing the franchise and planning for any future transfer of ownership.