Upon expiration or termination of the Bojangles franchise agreement, is any monetary amount assigned to the franchisee for goodwill associated with their use of the Bojangles system or proprietary marks?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Any and all goodwill arising from Franchisee's use of the Proprietary Marks in its franchised operation under the System shall inure solely and exclusively to Franchisor's
benefit, and upon expiration or termination of this Agreement and the license herein granted, no monetary amount shall be assigned to Franchisee as attributable to any goodwill associated with Franchisee's use of the System or the Proprietary Marks; and
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees will not receive any monetary compensation for goodwill upon termination or expiration of their franchise agreement. The franchise agreement specifies that all goodwill arising from the franchisee's use of Bojangles's proprietary marks and system exclusively benefits Bojangles. Upon the agreement's expiration or termination, no monetary amount will be assigned to the franchisee for any goodwill associated with their use of the Bojangles system or proprietary marks.
This means that any increase in brand recognition, customer loyalty, or overall positive reputation that the franchisee builds during the term of their agreement will revert entirely to Bojangles upon termination or expiration. Franchisees cannot claim or monetize any portion of the goodwill they helped create. This is a standard practice in franchising, as the brand and its associated goodwill are considered the franchisor's intellectual property.
This provision underscores the importance of understanding the long-term implications of the franchise agreement. While franchisees invest time and resources to build a successful business, they do not gain equity in the brand itself. The franchisee's right to use the Bojangles's Proprietary Marks is limited to the term of the agreement and ceases upon expiration or termination.
Prospective franchisees should consider this factor when evaluating the potential return on investment. While a successful Bojangles franchise can generate substantial income during the agreement term, the franchisee will not be compensated for the goodwill they helped create if they decide to sell the business or upon the agreement's natural conclusion. This highlights the importance of maximizing profits and building a strong, sustainable business during the franchise term.