What is the estimated low amount for insurance costs during the pre-opening phase of a Bojangles Restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of expenditure | Estimated Low Amount | Estimated High Amount | Method of payment | When due | To Whom Payment Is Made | |
|---|---|---|---|---|---|---|
| Franchise fee1 | $35,000 | $35,000 | Lump Sum | At signing of Franchise Agreement | Us | |
| Insurance2 | $5,000 | $21,000 | As arranged | As incurred | Insurers | |
| Pre-opening salaries, training materials, travel, living expenses during initial training3 | $144,550 | $166,500 | As arranged | During training | Employees, suppliers of food, training materials and lodging | |
| Site selection4 | $100 | $10,000 | As arranged | As incurred | Suppliers | |
| Building5 | $1,100,000 | $1,300,000 | As arranged | As incurred | Suppliers, contractors | |
| Site work6 | $625,000 | $1,135,000 | As arranged | As incurred | Suppliers, contractors | |
| Soft costs7 | $140,000 | $200,000 | As arranged | As incurred | Service providers; government authorities | |
| Equipment, furniture, | $550,000 | $690,000 | As arranged | As incurred | Suppliers | |
| signage and fixtures8 | ||||||
| Initial inventory9 | $20,000 | $62,000 | As arranged | As incurred | Suppliers | |
| Utility deposits & business licenses10 | $220 | $23,500 | As arranged | As incurred | Utility Companies, Government Authorities | |
| Additional funds11 (3 months initial phase) | $31,000 | $186,400 | As arranged | As incurred | Employees, insurers, suppliers | |
| Total12 | $2,650,870 | $3,829,400 | (Does not include real estate acquisition or leasehold costs.) | #### NOTES TO TABLE 1 |
1 Franchise Fee.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–27)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the estimated low amount for insurance during the pre-opening phase is $5,000. This figure covers general liability, employer's liability, workers' compensation, auto liability (if applicable), and property insurance.
The FDD notes that in some instances, franchisees may be required to pay the entire annual premium upfront. The actual costs can fluctuate based on factors such as the franchisee's business history, financial standing, prior risk exposure, and the restaurant's location. Therefore, the $5,000 figure represents a baseline, and franchisees should anticipate potential variations.
Prospective Bojangles franchisees should consult with insurance providers to obtain accurate quotes tailored to their specific circumstances and location. Understanding these potential insurance costs is crucial for budgeting and financial planning during the initial phase of establishing a Bojangles restaurant.