If litigation involving the Trade Dress is instituted or threatened against a Bojangles franchisee, who conducts the defense and bears the expense?
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 22 — CONTRACTS (FDD page 82)
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 Trade Dress, the franchisee must promptly inform Bojangles. Bojangles will then take charge of the defense and will cover the costs of the litigation. However, Bojangles retains the right to settle or otherwise resolve the litigation under terms they deem appropriate in their sole discretion. The franchisee is required to fully cooperate with Bojangles in defending or settling any such litigation.
This arrangement protects the franchisee from the potentially high costs and complexities of defending against intellectual property lawsuits. Given that the Trade Dress is owned and controlled by Bojangles, it is logical that they would assume responsibility for its defense. This also ensures a consistent legal strategy across all franchise locations.
It is important for a prospective Bojangles franchisee to understand that while Bojangles covers the expenses and controls the defense, the franchisee must cooperate fully. Failure to do so could potentially lead to breaches of the franchise agreement. Also, the franchisee does not have control over settlement terms, which are at Bojangles's discretion. Franchisees should seek clarification during their due diligence about what constitutes full cooperation and what recourse they have if they disagree with Bojangles's chosen legal strategy.