How does the Bojangles's Item 7 estimated initial investment relate to the franchisor's description in Item 1?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
[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, except for costs.
| Type of expenditure | Estimated Low Amount | Estimated High Amount | Method of payment | When due | To Whom Payment Is Made |
|---|---|---|---|---|---|
| Franchise fee1 | $35,000 | $35,000 | Lump Sum | At signing of Franchise Agreement | Us |
| Insurance2 | $5,000 | $21,000 | As arranged | As incurred | Insurers |
| Pre-opening salaries, training materials, travel, living expenses during initial training3 | $144,550 | $166,500 | As arranged | During training | Employees, suppliers of food, training materials and lodging |
| Site selection4 | $100 | $10,000 | As arranged | As incurred | Suppliers |
| Building5 | $1,100,000 | $1,300,000 | As arranged | As incurred | Suppliers, contractors |
| Site work6 | $625,000 | $1,135,000 | As arranged | As incurred | Suppliers, contractors |
| Soft costs7 | $140,000 | $200,000 | As arranged | As incurred | Service providers; government authorities |
| Equipment, furniture, | |||||
| signage and fixtures8 | $550,000 | $690,000 | As arranged | As incurred | Suppliers |
| Initial inventory9 | $20,000 | $62,000 | As arranged | As incurred | Suppliers |
| Utility deposits & business licenses10 | $220 | $23,500 | As arranged | As incurred | Utility Companies, Government Authorities |
| Additional funds11 (3 months initial phase) | $31,000 | $186,400 | As arranged | As incurred | Employees, insurers, suppliers |
| Total12 | $2,650,870 | $3,829,400 | (Does not include real estate acquisition or leasehold costs.) |
4 Upfitting costs. The costs for upfitting an existing facility to accommodate a Bojangles Express Restaurant will vary depending on several factors, including whether an existing food or deli type facility is being converted, whether a drive-thru window is being added to the facility if none exists, the square footage and dimensions of the Bojangles Express Restaurant, which may vary from approximately 800 square feet to 3,800 square feet, whether a seating addition is added, the size required for the kitchen depending on the menu format adopted for the Bojangles Express Restaurant and the existence of adequate hood systems and HVAC. In some cases, part of the upfitting cost may be paid by the landlord with the expectation of increased rents based upon a percentage of sales.
<sup>1 Franchise Fee. The franchise fee for a Bojangles Express Restaurant is $20,000 and is further described in Item 5.
9 Real estate acquisition or leasehold costs. We cannot estimate your initial investment for acquiring or leasing real estate for a Bojangles Express Restaurant as that cost varies based on multiple factors. If you currently own the building in which a Bojangles Express Restaurant is placed, you will not incur any additional rental costs.
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, Item 7 provides a detailed breakdown of the estimated initial investment required to open a Bojangles restaurant, expanding on the general description of the franchise opportunity typically found in Item 1. The initial investment ranges from $2,650,870 to $3,829,400, excluding real estate acquisition or leasehold costs. This investment covers various expenditures, including the franchise fee, insurance, pre-opening salaries and training, site selection, building costs, site work, soft costs, equipment, initial inventory, utility deposits, business licenses, and additional funds for the initial phase. These figures are estimates and can vary based on location, site specifics, and economic conditions.
The franchise fee for a traditional Bojangles restaurant is $35,000, payable as a lump sum upon signing the Franchise Agreement. Pre-opening expenses, including salaries, training materials, travel, and lodging for seven to nine people, range from $144,550 to $166,500. Building costs are estimated between $1,100,000 and $1,300,000, while site work can range from $625,000 to $1,135,000. Equipment, furniture, signage, and fixtures are projected to cost between $550,000 and $690,000. These costs reflect the expenses associated with constructing a free-standing restaurant with approximately 2,300 to 3,200 square feet of internal space on a 0.7 to 1.3-acre parcel.
For a Bojangles Express Restaurant, the franchise fee is $20,000. These restaurants are typically located within existing structures like convenience stores or shopping malls and are smaller than traditional restaurants. The costs for upfitting an existing facility for a Bojangles Express Restaurant will vary based on factors such as whether an existing food service facility is being converted, the addition of a drive-thru window, the square footage of the restaurant (ranging from approximately 800 to 3,800 square feet), and the presence of adequate hood systems and HVAC. Real estate acquisition or leasehold costs for a Bojangles Express Restaurant are not included in the estimated initial investment due to the variability of these costs. The initial investment also includes expenses for initial inventory, utility deposits, and business licenses, with additional funds allocated for the initial three months of operation.