For Bojangles developers, when are development fees and initial payments deferred until?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8. Development Fee. [CURRENT DEVELOPMENT FEE AMOUNT] per Restaurant, which is paid upfront upon execution of the development agreement(s) and then applied as a credit towards the "then" current franchise fee once a Restaurant opens.
- 10. Franchise Fee. The first Restaurant developed in the Assigned Area will be subject to a franchise agreement and payment of a franchise fee equal to [CURRENT FRANCHISE FEE AMOUNT], payable when construction commences on the Restaurant (and subject to any applicable Incentive Program if any is identified in Exhibit A).
EXHIBIT A
- Development Fee: [$] The Development Fee is $10,000 multiplied by the number of restaurants to be developed. Developer shall receive a credit of $10,000 for each Restaurant for which the applicable Franchise Agreement is executed, which credit Developer may deduct from the franchise fee when paid to Franchisor.
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- Franchise Fee: $35,000 due by the Construction Commencement Deadline. [If a Development Agreement credit applies, add: Notwithstanding the foregoing, Franchisee shall receive a credit against the Franchise Fee in the amount of [$5,000 or $10,000 – check the Development Agreement form] from a development fee paid by Franchisee pursuant to the Development Agreement between Franchisee and Franchisor dated as of [DATE]. As such, the total Franchise Fee due from Franchisee by the Construction Commencement Deadline, after the development fee credit is applied, is $[Amount].]
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the development fee is paid upfront upon execution of the development agreement(s). This fee is then applied as a credit towards the 'then' current franchise fee once a restaurant opens. For the first restaurant developed in the assigned area, the franchise fee is payable when construction commences on the restaurant.
Exhibit A of the Development Agreement further clarifies that the development fee is $10,000 multiplied by the number of restaurants to be developed. The developer receives a credit of $10,000 for each restaurant for which the applicable Franchise Agreement is executed. This credit can be deducted from the franchise fee when paid to Bojangles.
For a single restaurant franchise agreement, the franchise fee is $35,000, due by the Construction Commencement Deadline. However, if a Development Agreement credit applies, the franchisee will receive a credit against the Franchise Fee in the amount of $5,000 or $10,000 from the development fee paid, pursuant to the Development Agreement. As such, the total Franchise Fee due from Franchisee by the Construction Commencement Deadline, after the development fee credit is applied, is the specified amount after the deduction.