Does Bojangles reserve the right to grant other licenses for the principal trademarks, in addition to those licenses already granted to existing franchisees?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
The right to use the principal trademarks granted in the Franchise Agreement is non-exclusive. We, therefore, have and retain the rights, among others:
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- To use the principal trademarks in connection with selling products and services;
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- To grant other licenses for the principal trademarks, in addition to those licenses already granted to existing franchisees; and
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- To develop and establish other systems using the same or similar principal trademarks, or any other principal trademarks, and to grant licenses or franchises thereto without providing any rights therein to you.
Source: Item 13 — TRADEMARKS (FDD pages 50–52)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Bojangles retains the right to grant additional licenses for its principal trademarks beyond those already granted to existing franchisees. The Franchise Agreement grants franchisees a non-exclusive right to use Bojangles's trademarks, meaning Bojangles reserves specific rights. These rights include using the principal trademarks to sell products and services, granting other licenses for the principal trademarks in addition to those already granted, and developing other systems using the same or similar principal trademarks and granting licenses or franchises without providing any rights to existing franchisees.
This reservation of rights has significant implications for prospective Bojangles franchisees. While franchisees are granted the right to use Bojangles's trademarks to operate their restaurants, they do not have exclusive rights to those trademarks. Bojangles can license the trademarks to others, potentially increasing competition in a franchisee's market area. Furthermore, Bojangles can develop other systems or franchise concepts using similar trademarks, without providing any rights to existing franchisees. This could lead to the introduction of new brands or concepts that compete directly with existing Bojangles restaurants.
Bojangles also reserves the right to modify or discontinue principal trademarks or substitute different principal trademarks for use in identifying the Bojangles System and the businesses operating under it at its sole discretion and will have no obligation or liability to franchisees as a result of any modification, discontinuance or substitution. This means that Bojangles has the flexibility to adapt its branding and trademarks as needed, without being constrained by the rights of its franchisees. While this flexibility can be beneficial for the overall growth and evolution of the Bojangles brand, it also introduces a degree of uncertainty for franchisees, as the trademarks they rely on to attract customers could be changed or discontinued at any time.
Prospective franchisees should carefully consider these factors and evaluate the potential impact on their business before investing in a Bojangles franchise. Understanding the scope of the trademark license and the rights retained by Bojangles is crucial for making an informed decision.