After the termination of the Bojangles franchise agreement, is a franchisee allowed to disclose information obtained through training or materials provided by Bojangles pertaining to the Bojangles System to third parties?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Franchisee hereby acknowledges that pursuant to this Agreement, Franchisor will provide Franchisee with access to and training in processes and procedures of a proprietary nature and will provide Franchisee with access to and the right to use recipes and formulas, the Manual, logos, designs, trademarks, trade names and other proprietary information in connection with Franchisee's development and operation of the Restaurant. Franchisee acknowledges and agrees that Franchisee shall not at any time, whether during the term of this Agreement or after its expiration or earlier termination, disclose any information obtained through such training or from any materials provided by Franchisor to Franchisee and pertaining to the Bojangles System to any third party other than employees of Franchisee directly involved in the operations of the Restaurant. Further, Franchisee agrees that during the term of this Agreement and after its expiration or earlier termination, it shall not use any of such information or proprietary marks, including but not limited to any processes, procedures, recipes and formulas, for any purpose other than the operation of the Restaurant and will take all steps necessary to prevent any other use of them. Without limiting the foregoing, Franchisee specifically agrees that it shall not during the term of this agreement or after its expiration or earlier termination, offer for sale at any location, other than the Restaurant being operated at that time pursuant to this Agreement, any food or drink products prepared using in whole or part the procedures, processes, techniques, recipes or formulas provided by Franchisor to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to the 2025 Bojangles Franchise Disclosure Document, franchisees are restricted from disclosing information about the Bojangles system to third parties, even after the franchise agreement expires or is terminated. The FDD specifies that franchisees receive access to proprietary processes, procedures, recipes, formulas, the Manual, logos, designs, trademarks, trade names, and other confidential information during their training and operation of the restaurant.
This agreement explicitly states that franchisees cannot disclose any information obtained through training or materials provided by Bojangles to any third party. The only exception to this rule is for employees of the franchisee who are directly involved in the restaurant's operations. This restriction extends beyond the term of the agreement, meaning that even after the franchise relationship ends, the franchisee is still obligated to maintain the confidentiality of the Bojangles system.
This clause is designed to protect Bojangles' competitive advantage and proprietary information. Unauthorized disclosure could harm the brand and its franchisees by allowing competitors to replicate their systems and offerings. Franchisees should understand that violating this confidentiality agreement could result in legal action, including injunctions and financial penalties, as Bojangles seeks to protect its trade secrets and operational methods.
The FDD also states that franchisees must take necessary steps to prevent any unauthorized use of the information or proprietary marks. This includes not using any processes, procedures, recipes, or formulas for any purpose other than operating the Bojangles restaurant under the franchise agreement. Franchisees are also prohibited from selling food or drink products prepared using Bojangles' methods at any other location outside of the franchised restaurant.