If litigation involving the trade dress is instituted against a Bojangles franchisee, who conducts the defense?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) In the event that litigation involving the Trade Dress 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 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee faces litigation or a threatened lawsuit related to the brand's trade dress, the franchisee must promptly inform Bojangles. Bojangles retains control over the legal defense and will manage the litigation, including bearing the associated expenses. However, Bojangles also has the discretion to settle the litigation under terms they deem appropriate.
This arrangement means that while the franchisee is obligated to notify Bojangles of any trade dress-related legal issues, they do not have the autonomy to conduct their own defense or settlement negotiations. Bojangles maintains the right to decide how the litigation is handled, which could include settling the case even if the franchisee prefers to fight it.
The franchisee is required to fully cooperate with Bojangles in defending or settling any such litigation. This cooperation is crucial, as failure to comply could potentially lead to further legal or contractual repercussions. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand's image and trademarks consistently across all locations.