Does the complaint against Bojangles in the Guilford County Case seek monetary damages?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Bojangles' of America Franchisee Association, Inc. v. Bojangles Opco, LLC, Case No. 24-CVS-3738 (N.C. Super. Ct., Guilford Cty.) (the "Guilford County Case") and Bojangles Restaurants, Inc. and Bojangles Opco, LLC v. Bojangles' of America Franchisee Association, Inc. and Berkowitz Pollack Brant, Case No. 24-CV018004-590 (N.C. Super Ct., Mecklenburg Cty.) (the "Mecklenburg County Case). On March 4, 2024, Bojangles' of America Franchisee Association ("BFA"), which is a franchisee association whose members operate Bojangles restaurants, filed a complaint in the Guilford County Case against us asserting claims for breach of an oral agreement and commission of unfair and deceptive trade practices in violation of NC Gen. Stat. § 75-1.1. The complaint seeks: (i) an order of specific performance compelling us to provide information to the BFA to complete an audit of the Bojangles Marketing Development Fund and an audit of an Accrual Account under a Master Distribution Agreement between our affiliate, Bojangles Restaurants, Inc., and McLane Foodservice, Inc. ("McLane"), a supplier to Bojangles restaurants; (ii) a declaration that the BFA has a right to conduct an annual audit of the Marketing Development Fund and the Accrual Account; and (iii) a determination that our actions with respect to the audit constitute an unfair and deceptive trade practices giving rise to a claim for attorneys' fees. The complaint does not seek any monetary damages from us. We intend to vigorously defend against these claims.
Source: Item 3 — LITIGATION (FDD pages 15–17)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the complaint filed against them in the Guilford County Case does not seek monetary damages. The Bojangles' of America Franchisee Association filed the complaint asserting claims for breach of an oral agreement and unfair and deceptive trade practices. Instead of monetary damages, the complaint seeks specific actions from Bojangles.
The specific actions requested in the Guilford County Case include an order compelling Bojangles to provide information to the BFA to complete audits of the Bojangles Marketing Development Fund and an Accrual Account under a Master Distribution Agreement with McLane Foodservice, Inc. The complaint also seeks a declaration that the BFA has the right to conduct annual audits of these funds. Additionally, it requests a determination that Bojangles' actions regarding the audit constitute unfair and deceptive trade practices, which could lead to a claim for attorneys' fees.
For a prospective franchisee, this information indicates the types of legal challenges Bojangles faces. While the Guilford County Case does not involve monetary damages, it highlights potential disputes over financial transparency and compliance with agreements. Franchisees should be aware of the possibility of involvement in similar disputes or the impact of such legal actions on the brand's reputation and financial stability. Bojangles intends to vigorously defend against these claims.