How does the Bojangles's Item 5 development fee relate to the franchisor's obligations regarding trademarks as described in Item 13?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
velopment Fee
You must pay a development fee of $10,000 for each Restaurant that we authorize you to develop when you sign the Development Agreement regardless of whether you actually develop Restaurants after that time. When you sign the Development Agreement, you also will sign a Franchise Agreement for the first Restaurant that you plan to develop.
The development fee is fully earned and non-refundable in consideration of administrative and other expenses we incur in entering into the Development Agreement and for our lost or deferred opportunity to enter into the Development Agreement with others.
During our previous fiscal year, the development fee paid to us for each Restaurant under applicable development agreements was $10,000 for our standard development.
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.
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bojangles charges a development fee of $10,000 for each restaurant a developer is authorized to develop under a Development Agreement. This fee is paid when the Development Agreement is signed and is considered fully earned and non-refundable to cover administrative expenses and lost opportunities for Bojangles.
The development fee paid is credited against the franchise fee of $35,000 due when the franchisee signs the Franchise Agreement and commences construction of the restaurant. This means that while the initial development fee is non-refundable, it effectively reduces the overall initial investment required to open a Bojangles restaurant.
The FDD excerpts provided do not specify how the development fee directly relates to Bojangles' obligations regarding trademarks as described in Item 13. However, the Development Agreement grants the developer rights to establish and operate Bojangles restaurants and to use the Bojangles System, which includes the Proprietary Marks. The franchisee is granted access to and training in processes and procedures of a proprietary nature and will provide Developer with access to and the right to use recipes and formulas, manuals, logos, designs, trademarks, trade names and other proprietary information in connection with Developer's development and operation of the Bojangles restaurant.
To fully understand the relationship between the development fee and trademark obligations, a prospective franchisee should review Item 13 of the FDD, which details Bojangles' obligations to protect and maintain its trademarks, and how franchisees are permitted to use them. Further investigation into the specific terms outlined in Item 13 would be necessary to fully answer the question.