Is the development fee paid to Bojangles refundable, and why or why not?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the development rights granted herein, Developer has paid to Franchisor a development fee in the amount set forth on Exhibit A to this Agreement, receipt of which is acknowledged by Franchisor, which fee has been fully earned by Franchisor and is nonrefundable, in consideration of the administrative and other expenses incurred by Franchisor and for the development opportunities lost or deferred as a result of the rights granted Developer herein.
- B. Developer shall receive a credit in the amount set forth on Exhibit A to this Agreement for each Restaurant for which the applicable Franchise Agreement is executed within the time period specified under Paragraph IV.E. hereof, which credit Developer may deduct from the franchise fee paid to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the development fee is nonrefundable. Specifically, the FDD states that the development fee is considered fully earned by Bojangles upon receipt and is nonrefundable. This fee compensates Bojangles for administrative and other expenses they incur, as well as for the development opportunities they forgo by granting the development rights to the developer.
This nonrefundable policy means that a prospective Bojangles developer should be certain of their commitment and financial readiness before paying the development fee. Once paid, the fee will not be returned, regardless of whether the developer ultimately opens a restaurant. This is a standard practice in franchising, as the franchisor incurs costs and loses other potential opportunities upon granting development rights.
However, the document mentions that the developer may receive a credit for each restaurant for which the Franchise Agreement is executed within the specified time period. This credit can be deducted from the franchise fee paid to Bojangles. Therefore, while the initial development fee is nonrefundable, a portion of it can be applied towards future franchise fees if the developer meets the required conditions and timelines.