If a Bojangles franchisee violates the non-compete agreement, what costs might they be required to pay?

According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee fails to comply with the non-compete requirements, they acknowledge that this failure will cause irreparable injury to Bojangles. Consequently, the franchisee agrees to cover all court costs and reasonable attorneys' fees incurred by Bojangles in pursuing specific performance or an injunction against the violation. This means that if a franchisee breaches the non-compete agreement, they will be responsible for the legal expenses Bojangles incurs to enforce the agreement through court action.

This provision is fairly standard in franchising, as franchisors need to protect their brand and proprietary information. Non-compete agreements are designed to prevent franchisees from using the franchisor's confidential information and business practices to compete against the system, either during the franchise term or for a specified period after termination. The franchisee's agreement to pay legal costs serves as a deterrent against violating the non-compete terms.

For a prospective Bojangles franchisee, this underscores the importance of fully understanding and adhering to the non-compete obligations outlined in the franchise agreement. Failure to do so could result in significant financial liabilities in the form of legal fees and court costs, in addition to potential damages for the harm caused to Bojangles's business. It is advisable to seek legal counsel to fully comprehend the scope and implications of the non-compete clause before signing the franchise agreement.