For a Bojangles development agreement, how is the development fee calculated?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
e Verification Form is attached as Exhibit O to this Disclosure Document.
EXHIBIT A
DEVELOPER INFORMATION
- Developer: [DEVELOPER ENTITY] 2. 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. 3. Development Schedule: This Agreement authorizes and obliges Developer to establish and operate [ ()] Restaurants pursuant to a Franchise Agreement for each Restaurant. The following is Developer's development schedule: Development Schedule Restaurant No. Subject to the Development Agreement Site Approval Deadline Construction Commencement Deadline Opening Deadline Cumulative Total Number of Restaurants Which Developer Shall Have Open And Operating by the Opening Deadline [Drafting Note: Site Approval Deadline is 270 days prior to Construction
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the development fee is calculated by multiplying $10,000 by the number of restaurants the developer commits to developing. This fee is paid upfront when the development agreement is signed. The developer then receives a credit of $10,000 for each restaurant when the franchise agreement is executed, which can be deducted from the franchise fee due to Bojangles.
For a prospective Bojangles developer, this means a significant initial investment is required, proportional to the number of restaurants they plan to open. However, this upfront payment is not an additional cost, as it is later credited towards the franchise fees for each location. This structure incentivizes developers to commit to multiple locations, as the initial fee contributes to future franchise fees.
It's important to note that the development agreement obligates the developer to establish and operate the agreed-upon number of restaurants according to a specific development schedule. Failure to meet these deadlines could result in penalties or termination of the agreement. Therefore, developers need to carefully consider their capacity to meet the development schedule before entering into a development agreement with Bojangles.