Is the Bojangles development fee refundable, and why or why not?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
II. DEVELOPMENT FEE
- A. 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.
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 generally nonrefundable. The FDD states that the development fee is fully earned by Bojangles upon receipt, acknowledging that Bojangles incurs administrative and other expenses and loses or defers other development opportunities as a result of granting the development rights to the developer. This fee compensates Bojangles for these considerations.
However, the document also mentions a specific instance where a fee is refundable. If a developer requests an extension to a deadline and Bojangles rejects this request, the extension fee will be refunded to the developer. This refund is explicitly tied to the rejection of the extension request, distinguishing it from the initial development fee.
In summary, while the initial development fee is nonrefundable due to the costs and lost opportunities Bojangles incurs, there is an exception where an extension fee may be refunded if the extension request is denied. This distinction is important for prospective developers to understand the conditions under which they might receive a refund from Bojangles.