What expenses are included in the additional funds estimate for the initial 3 months of operating a Bojangles restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
8 Additional funds (3 months initial phase). You will need capital to support on-going and miscellaneous expenses to the extent these costs are not covered by sales revenue. New businesses often generate a negative cash flow for some period of time. These figures are an estimate of the additional funds that you may require for operating expenses during the initial three months of business. They include payroll, taxes, insurance, food, paper, supplies, utilities, point of sale system maintenance and support fees, licenses and permits, bank charges and repair and maintenance expenses. They do not include advertising or royalty fee payments made to us. They also do not include real estate or leasehold costs. These figures
are estimates, and we cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on factors such as: the size of your Bojangles Express Restaurant; how closely you follow our methods and procedures; your management skill, experience and business acumen; financing costs; local economic conditions; the local market for restaurants; the prevailing wage rate; competition; and the sales level reached during the initial period.
Source: Item 9 — Initial inventory. The estimate covers initial inventory of products, including food and paper products, and cleaning, office and general supplies for the opening of the Restaurant. (FDD pages 27–30)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the additional funds estimate for the first three months of operation includes several key expenses. These funds are meant to cover ongoing costs that may not be fully offset by sales revenue during the initial phase when new businesses often experience negative cash flow. It's important to note that these figures are estimates, and Bojangles cannot guarantee that franchisees won't encounter additional expenses. The actual costs can vary significantly based on factors like the restaurant's size, adherence to Bojangles's operating procedures, the franchisee's management skills, financing costs, local economic conditions, market competition, and the sales volume achieved during this initial period.
The specific expenses included in the additional funds estimate are payroll, taxes, insurance, food, paper, supplies, utilities, point of sale system maintenance and support fees, licenses and permits, bank charges, and repair and maintenance expenses. However, the estimate does not account for advertising costs, royalty fee payments to Bojangles, or real estate and leasehold costs. This means franchisees need to budget separately for these items.
The FDD indicates that Bojangles relied on its affiliate's experience and outside consultations to determine these estimates. Franchisees are strongly advised to carefully review these figures with a business advisor, a certified public accountant experienced in the restaurant industry, and their attorney before making a final decision to purchase the franchise. This thorough review will help potential franchisees understand the financial commitments involved and plan accordingly for the initial operating phase.