Does Walker Parent guarantee Bojangles' obligations under the Franchise Agreement?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Also attached as Exhibit N are the audited consolidated financial statements of Walker Parent, Inc. and subsidiaries as of December 29, 2024 and December 31, 2023 and for the years ended December 29, 2024, December 31, 2023 and December 25, 2022. These financials are being included for disclosure purposes only. As reflected in Item 1, BRI, which is also a subsidiary of Walker Parent and Bojangles', Inc., is our Manager and will perform certain services on our behalf, including post-sale support and services to franchisees, under a Management Agreement with us. Neither BRI nor Walker Parent is a party to any Franchise Agreement or Development Agreement that we sign with franchisees, nor guarantees any of our obligations under any Franchise Agreement or Development Agreement that we sign with franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Walker Parent does not guarantee Bojangles' obligations under the Franchise Agreement. Item 1 of the FDD states that Walker Parent has never offered franchises, does not operate any Bojangles restaurants, and does not provide any services to Bojangles' franchises.
Furthermore, Item 21 clarifies that neither Walker Parent nor BRI (another subsidiary) is a party to any Franchise Agreement or Development Agreement that Bojangles signs with franchisees. The key point is that Walker Parent does not guarantee any of Bojangles' obligations under these agreements.
This means that franchisees cannot rely on Walker Parent's assets or financial strength as a guarantee for Bojangles' performance of its obligations. The franchisee must assess Bojangles' own financial stability and ability to meet its commitments independently. This is a common arrangement in franchising, where parent companies often create separate legal entities to operate the franchise system and limit their direct liability.