What is the estimated range for utility deposits and business licenses that a Bojangles franchisee can expect to pay?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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.) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–27)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee can expect to pay between $220 and $23,500 for utility deposits and business licenses. These payments are made as arranged and as incurred to utility companies and government authorities. The wide range suggests that costs can vary significantly depending on the location of the franchise and the specific requirements of local utility providers and government regulations. These fees are part of the initial investment required to start the business.
Utility deposits are typically required by utility companies to secure payment for services such as electricity, gas, and water. The amount of the deposit can depend on factors such as the size of the restaurant, the estimated usage, and the franchisee's creditworthiness. Business licenses are permits required by local, state, or federal governments to operate a business. The cost of these licenses can vary depending on the type of business, the location, and the size of the operation.
Prospective franchisees should research the specific utility deposit and business license requirements in their area to get a more accurate estimate of these costs. It would be prudent to contact local utility companies and government agencies to inquire about specific fees and requirements. Understanding these costs is crucial for budgeting and financial planning when opening a Bojangles franchise.
These costs are part of the broader "soft costs" which also include building permits, impact fees, taxes, bonds, and other fees, as well as legal, accounting, administrative, permitting, architectural, design and miscellaneous other professional fees. These soft costs are estimated to range from $140,000 to $200,000, indicating that utility deposits and business licenses are a relatively small, though still significant, component of the overall initial investment.