If a Bojangles franchisee's restaurant is geographically remote, what additional costs might the franchisee be required to pay?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
[If applicable add: Franchisee acknowledges that the Restaurant is geographically remote from other Bojangles Restaurants as of the Effective Date. As a result, the Restaurant will not be easily accessible by Franchisor's approved suppliers and distributors. Franchisee agrees to pay applicable incremental supplier and/or distribution costs charged by such approved suppliers and/or distributors for orders and deliveries related to the Restaurant.]
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, a franchisee operating a restaurant in a geographically remote location may incur additional costs. Specifically, if the restaurant is not easily accessible by Bojangles' approved suppliers and distributors, the franchisee is responsible for paying the incremental supplier and/or distribution costs. These costs are charged by the approved suppliers and/or distributors for orders and deliveries related to the remote restaurant.
This condition is outlined in Exhibit A of the Franchise Agreement, under the section addressing the Approved Location. The document explicitly states that the franchisee acknowledges the restaurant's remote location and the resulting difficulty in accessibility for suppliers and distributors. By signing the agreement, the franchisee agrees to cover these additional expenses.
For a prospective Bojangles franchisee, this means that selecting a location that is not easily accessible could lead to higher operating costs due to increased supply and distribution expenses. It is crucial to factor in these potential additional costs when evaluating the financial feasibility of a remote location. Franchisees should discuss these potential costs with Bojangles and its approved suppliers during their due diligence to get a clear understanding of the financial implications.