What expenses are specifically excluded from the 'additional funds' estimate for a new 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
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 estimate for 'additional funds' needed during the initial three months of business specifically excludes certain expenses. These exclusions are important for prospective franchisees to understand when budgeting for their new restaurant.
The additional funds estimate covers various operating expenses such as 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 include advertising costs, royalty fee payments to Bojangles, or any real estate or leasehold costs. This means franchisees must budget separately for these items.
The FDD emphasizes that these figures are only estimates, and actual costs may vary. Factors influencing these costs include the size of the restaurant, adherence to Bojangles's procedures, management skills, financing costs, local economic conditions, the local restaurant market, prevailing wage rates, competition, and sales levels achieved during the initial period. Therefore, it is crucial for potential franchisees to conduct thorough due diligence and consult with financial advisors to develop a realistic budget that accounts for all potential expenses, including those excluded from the 'additional funds' estimate.
Prospective franchisees should carefully consider the exclusions and their potential financial impact. For example, advertising costs can be significant, especially during the initial launch phase, and real estate costs are often a major expense. Understanding these exclusions is vital for making informed financial decisions and ensuring the long-term success of a Bojangles franchise.