For a new Bojangles restaurant, what royalty fee reduction applies during the first year of operation?

According to Bojangles's 2025 Franchise Disclosure Document, franchisees may be eligible for a royalty fee reduction during the initial years of operation. Specifically, during the first year following the opening of a qualifying restaurant, the royalty fee is reduced by 3% of the restaurant's gross sales. This reduction is subtracted from the standard royalty fee.

For example, if the standard royalty fee is 4% of gross sales, the franchisee would only pay 1% of gross sales in royalties during the first year of operation due to this 3% reduction. This incentive is designed to help new franchisees manage their initial costs and improve profitability during the startup phase.

The royalty fee reduction decreases over the subsequent two years. In the second year, the reduction is 2% of gross sales, and in the third year, it is 1% of gross sales. By the fourth year and onward, the franchisee will pay the standard royalty fee as outlined in the Franchise Agreement, with no further reductions. This phased approach helps franchisees gradually transition to the full royalty fee as their business matures.