What were the key terms of the confidential settlement reached between Bojangles' and 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' 2025 Franchise Disclosure Document, a confidential settlement was reached on January 18, 2022, between Bojangles' International, LLC (BIL) and William J. Gordon, Jr., along with Wilgo Bo, LLC, and several other entities owned by Gordon. These entities had previously filed a complaint against BIL asserting violations of the North Carolina Unfair and Deceptive Trade Practices Act, fraudulent concealment, negligent misrepresentations, breach of fiduciary duties, and constructive fraud. The plaintiffs had sought damages exceeding $21 million, including treble damages, rescission of franchise agreements, punitive damages, and attorney's fees and costs.
The settlement terms involved the plaintiffs agreeing to dismiss all their claims. In return, Bojangles agreed to reduce Wilgo Bo's royalty percentage for a two-year period. Additionally, Bojangles extended Wilgo Bo's exclusive territorial rights surrounding its six restaurants for an additional year.
It is important to note that the territorial exclusivity granted to Wilgo Bo as part of the settlement is not transferable to any potential buyer of Wilgo Bo's business. The parties formalized the settlement by filing a stipulated dismissal of the case on January 25, 2022. Because the settlement was confidential, the exact reduction in royalty percentage is not specified in the FDD.