Is the franchise fee for a Bojangles Restaurant refundable?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 7 ESTIMATED INITIAL INVESTMENT
You will be required to make various expenditures in addition to the payments described above in Items 5 and 6 in connection with commencing operation of a Restaurant. The following tables set forth the range of expenditures we anticipate as reasonable for the total initial investment, which may be required to establish a traditional Restaurant and a Bojangles Express Restaurant, but subject to variations according to location and site. Our standard traditional Restaurant building plan ranges from 2,500 to 3,200 square feet. Bojangles Express Restaurants are located in or attached to a convenience store or other structure such as a shopping mall, food court, travel plaza, grocery or department store, college campus, airport location, stadium, or other non-traditional location that is substantially smaller than our standard traditional Restaurants. Except for security deposits, all payments should be assumed to be non-refundable. All payments are expected to be determined prior to opening of the Restaurant itself,
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–27)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, most payments associated with opening a restaurant are considered non-refundable, with the exception of security deposits. Item 7 outlines the estimated initial investment for establishing a traditional Bojangles Restaurant or a Bojangles Express Restaurant. The franchise fee itself is part of this initial investment.
The estimated initial investment for a traditional Bojangles restaurant ranges from $2,650,870 to $3,829,400, which does not include real estate acquisition or leasehold costs. The franchise fee is a component of this total. The FDD specifies that, unless it's a security deposit, all payments should be assumed to be non-refundable. This suggests that the franchise fee of $35,000 is likely non-refundable.
Prospective franchisees should carefully consider this non-refundable aspect of the franchise fee. It is crucial to conduct thorough due diligence and assess the risks involved before signing the Franchise Agreement and paying the fee. Franchisees should seek clarification from Bojangles regarding the specific circumstances, if any, under which a refund of the franchise fee might be considered.