If a Bojangles franchisee is involved in litigation regarding the Proprietary Marks, who conducts the defense and bears the expense?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) In the event that litigation involving the Proprietary Marks is instituted or threatened against Franchisee, Franchisee shall promptly notify Franchisor.
Franchisor shall conduct the defense, and bear the expense of such litigation, but shall be entitled to settle or otherwise dispose of the litigation on terms which, in its sole discretion, it may decide upon.
Franchisee shall cooperate fully with Franchisor in defending or settling such litigation.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee faces litigation related to the Proprietary Marks, Bojangles will handle the defense and cover the associated expenses. However, Bojangles retains the right to settle or otherwise resolve the litigation based on its own judgment.
This arrangement means that a Bojangles franchisee is not solely responsible for the costs and management of legal challenges to the Proprietary Marks. This is a significant benefit, as trademark litigation can be very expensive. The franchisee is still obligated to fully cooperate with Bojangles in the defense or settlement process.
This is a fairly standard arrangement in franchising, as the franchisor has a strong interest in protecting its trademarks. The franchisee benefits from the franchisor's expertise and financial resources in these matters, while the franchisor maintains control over the legal strategy and any potential settlement.