How does owning the building impact rental costs for a Bojangles Express Restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
uring the initial period.
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. If you lease space within a facility owned by a third party landlord your monthly rental will vary and may require percentage rent based on Restaurant Gross Sales. The cost of renovation of the facility for inclusion of the Bojangles Express Restaurant in some cases may be paid in whole or in part by the owner of the facility, which will generally increase the amount of rent required. If utilities, taxes and insurance for casualty to the facility are included within the rent, the rents may also be higher than the amounts shown. Typical retail rents vary within different markets, depending on a variety of factors, including, geographic location, type of venue, build to suit costs or landlord passthroughs of various development costs, which can all have an impact on the rental rate. Pre-opening rent figures will vary and can be paid for a certain number of months before being open to the public. For example, if preopening rent is required for three months prior to opening to the public, it may range from approximately $12,000 to $27,000 or more, depending on your rental rate and negotiated terms i
Source: Item 9 — Initial inventory. The estimate covers initial inventory of products, including food and paper products, and cleaning, office and general supplies for the opening of the Restaurant. (FDD pages 27–30)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, owning the building where a Bojangles Express Restaurant is located eliminates additional rental costs. If a franchisee leases space from a third-party landlord, the monthly rental costs will vary and may include a percentage rent based on the restaurant's gross sales.
The FDD also notes that if the landlord contributes to the renovation costs for incorporating the Bojangles Express Restaurant, this will generally increase the rent required. Furthermore, if utilities, taxes, and casualty insurance are included in the rent, the rental costs may be higher. The document emphasizes that typical retail rents can vary significantly based on factors such as geographic location, type of venue, build-to-suit costs, and landlord pass-throughs of development costs.
Pre-opening rent is another factor that can impact costs. If rent is required for a period before the restaurant opens to the public, such as three months, it may range from approximately $12,000 to $27,000 or more, depending on the rental rate and negotiated terms. Therefore, owning the building can provide a significant advantage by avoiding these variable and potentially substantial rental expenses.