What was Bojangles' initial response to the complaint filed by William J. Gordon, Jr.?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
d Matters
William J. Gordon, Jr., Wilgo Bo, LLC, Wilgo Bo Stoneport, LLC, Wilgo Bo Pantops, LLC, Wilgo Bo Winchester Gateway, LLC, Wilgo Bo Hollymead, LLC, Wilgo Bo Winchester Round Hill, LLC, and Wilgo Bo Staunton, LLC v. Bojangles' International, LLC (Civil Action No. 3:20-cv-0060-MOC-DSC). United States District Court, Western District of North Carolina. On January 28, 2020, Wilgo Bo, LLC ("Wilgo Bo") and its owner, William J. Gordon, Jr. ("Gordon") and six other entities owned by Gordon (the "Sublessor Entities") filed a complaint against BIL asserting, among other things, that BIL is liable for violations of the North Carolina Unfair and Deceptive Trade Practices Act and for fraudulent concealment, for making negligent misrepresentations, for breach of fiduciary duties, and for constructive fraud in connection with alleged misrepresentations and omissions in both BIL's Franchise Disclosure Document and in communications with Wilgo Bo during the sales process. Wilgo Bo, Gordon and the Sublessor Entities (collectively, "Plaintiffs") sought damages in excess of $21 million, along with treble damages, rescission of the franchise agreements, punitive damages, and their attorneys' fees and costs. BIL filed an answer to the complaint on March 17, 2020 and denied the allegations made by the Plaintiffs, denied that the complaint stated any viable claim against BIL, and denied the Plaintiffs' claim to any of the requested relief. After discovery concluded, BIL moved for summary judgment on all claims. Prior to the court resolving BIL's motion, on January 18, 2022, the parties agreed to a confidential settlement in which Wilgo Bo, Gordon and the Sublessor Entities agreed to dismiss all of their claims and BIL agreed to reduce Wilgo Bo's royalty percentage for a two-year period and extend Wilgo Bo's former exclusive territorial rights surrounding its six restaurants for an additional year, which territorial exclusivity will not be transferable to a potential buyer of Wilgo Bo's business. The parties filed a stipulated dismissal of the case on January
Source: Item 3 — LITIGATION (FDD pages 15–17)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, when William J. Gordon, Jr., along with Wilgo Bo, LLC, and several other entities, filed a complaint against Bojangles' International, LLC (BIL) on January 28, 2020, Bojangles responded by denying the allegations. The complaint included claims of violations of the North Carolina Unfair and Deceptive Trade Practices Act, fraudulent concealment, negligent misrepresentations, breach of fiduciary duties, and constructive fraud. These claims stemmed from alleged misrepresentations and omissions in Bojangles' Franchise Disclosure Document and communications during the sales process. The plaintiffs sought damages exceeding $21 million, including treble damages, rescission of franchise agreements, punitive damages, and attorney's fees.
Bojangles' initial response, filed on March 17, 2020, specifically denied all allegations made by the plaintiffs. Bojangles also denied that the complaint presented any viable claim against them and refuted the plaintiffs' entitlement to any of the requested relief. This firm denial set the stage for further legal proceedings, including discovery and a motion for summary judgment by Bojangles after discovery was concluded.
Ultimately, the dispute was resolved through a confidential settlement on January 18, 2022, before the court ruled on Bojangles' motion for summary judgment. As part of the settlement, the plaintiffs agreed to dismiss all claims. In return, Bojangles agreed to reduce Wilgo Bo's royalty percentage for two years and extend Wilgo Bo's exclusive territorial rights around its six restaurants for an additional year. This territorial exclusivity was made non-transferable to any potential buyer of Wilgo Bo's business. The parties then filed a stipulated dismissal of the case on January 25, 2022.