What are all the fees Bojangles charges across different Items, including the initial fees in Item 5 and other fees in Item 6?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Fee
Under the Franchise Agreement, you must pay a franchise fee of $35,000 by the construction commencement deadline of the traditional Restaurant that you agreed to develop according to the development schedule in your Development Agreement. We will credit the development fee that you paid for each Restaurant that you develop under the Development Agreement against the franchise fee that you pay for that Restaurant if you sign the Franchise Agreement and pay the applicable franchise fee by the time you commence construction of the Restaurant.
The franchise fee for each Individual Franchise Agreement is $35,000 and is payable upon execution of the Individual Franchise Agreement.
You must pay a franchise fee of $20,000 when you sign the Bojangles Express Franchise Agreement for a Bojangles Express Restaurant.
All franchise fees are fully earned and non-refundable when paid.
Some franchisees may be "grandfathered" under earlier agreements that establish franchise fees, royalties and contributions to the Marketing Development Fund in amounts less than described in this disclosure document.
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, franchisees can expect to pay several initial and ongoing fees. The initial fees for a traditional Bojangles restaurant include a $35,000 franchise fee or a $10,000 development fee for each restaurant developed under a Development Agreement. For a Bojangles Express Restaurant, the franchise fee is $20,000. These fees are non-refundable once paid.
Other fees that Bojangles franchisees may incur include an audit fee to cover deficiencies in amounts owed plus interest, particularly if an audit reveals an understatement of 5% or more. Interest on overdue amounts is charged at 1.5% per month compounded monthly, or the maximum rate permitted by law, whichever is less. A transfer fee of $5,000 is required per restaurant for transfers that result in a controlling interest change. While the Bojangles Express Franchise Agreement does not provide for renewal rights, a renewal fee equal to 50% of the current franchise fee would be payable at the time of renewal for standard franchise agreements.
Additional fees may arise for new product and supplier testing, estimated between $4,800 and $12,900, payable upon demand if a franchisee requests approval for new products or alternate suppliers. Optional training programs incur a then-current training fee. On-site support is available at $2,500 per person per week. Franchisees are also responsible for covering Bojangles's costs and attorney's fees if Bojangles prevails in litigation regarding agreement enforcement. Finally, franchisees must reimburse Bojangles for insurance costs if they fail to maintain the required insurance coverage.
Prospective franchisees should carefully consider these fees and their potential impact on profitability. Understanding the conditions under which these fees are charged is crucial for financial planning and operational decision-making. It is also important to note that some franchisees may have different fee arrangements based on earlier agreements.