When is the payment due for the initial inventory for a Bojangles restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Estimated Low Amount | Estimated High Amount | Method of Payment | When Due | To whom payment is to be made |
|---|---|---|---|---|---|
| Franchise Fee1 | $20,000 | $20,000 | 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 and as incurred | During training | Employees, suppliers of food, training materials and lodging |
| Upfitting costs4 | $327,000 | $705,000 | As arranged | As incurred | Contractors and Suppliers |
| Equipment, furniture, | $231,000 | $702,500 | As arranged | As incurred | Suppliers |
| signage and fixtures5 | |||||
| Initial inventory6 | $20,000 | $62,000 | As arranged | As incurred | Suppliers |
| Utility deposits & business licenses7 | $220 | $23,500 | As arranged | As incurred | Utility Companies, Government Authorities |
| Additional funds8 | $30,900 | $186,400 | As arranged | As incurred | Employees, |
| (3 months initial | insurers, | ||||
| phase) | suppliers | ||||
| Total10 | $778,670 | $1,886,900 | (Does not include real estate acquisition or leasehold costs.9) |
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, the payment for the initial inventory, which ranges from $20,000 to $62,000, is due 'as incurred.' This means that franchisees are expected to pay for the initial inventory as they purchase it from suppliers. The initial inventory covers products such as food, paper products, cleaning, office, and general supplies necessary for opening the Bojangles restaurant.
This 'as incurred' payment schedule is fairly standard in the franchise industry, as it allows franchisees to manage their cash flow more effectively by paying for inventory as needed rather than in a large lump sum upfront. However, franchisees should be prepared to have sufficient funds available to cover these costs as they arise during the pre-opening phase. It is crucial to maintain open communication with suppliers to understand their payment terms and conditions.
Prospective Bojangles franchisees should carefully consider the estimated cost of initial inventory and factor it into their overall budget. While the FDD provides an estimated range, actual costs may vary depending on factors such as the size of the restaurant, menu format, and local market conditions. It is advisable to consult with a business advisor or accountant to develop a detailed financial plan that accounts for these expenses and ensures adequate funding is available when payments are due to suppliers.