What recourse does Bojangles have if a developer fails to comply with the confidential information requirements outlined in Paragraph VII?

According to Bojangles's 2025 Franchise Disclosure Document, if a developer fails to comply with the confidential information requirements outlined in Paragraph VII, Bojangles can pursue specific performance or an injunction against the violation. The developer is liable for all court costs and reasonable attorney's fees incurred by Bojangles in obtaining this specific performance or injunction. This means Bojangles can seek a court order to compel the developer to comply with the confidentiality obligations and prevent further disclosure or misuse of the confidential information.

This provision is significant for prospective Bojangles developers as it highlights the importance Bojangles places on protecting its confidential information, including operational methods, recipes, and marketing techniques. Developers must ensure they and their employees maintain the confidentiality of this information, both during and after the term of the Development Agreement or Franchise Agreement. Failure to do so can result in legal action and financial liability for the developer.

The FDD emphasizes that any breach of Paragraph VII will cause irreparable injury to Bojangles. This acknowledgement strengthens Bojangles's legal position in seeking injunctive relief, as it demonstrates the potential for significant harm if the confidential information is compromised. The developer's agreement to cover court costs and attorney's fees further incentivizes compliance with the confidentiality requirements.

This type of clause is standard in franchise agreements to protect the franchisor's proprietary information and maintain the integrity of the franchise system. Prospective developers should carefully review Paragraph VII and understand their obligations regarding confidential information to avoid potential legal disputes and financial penalties.