Does the total initial investment for a Bojangles Restaurant include real estate acquisition or leasehold costs?
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 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, | $550,000 | $690,000 | As arranged | As incurred | Suppliers |
| signage and fixtures8 | |||||
| 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.) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–27)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the total initial investment for a traditional Bojangles restaurant does not include real estate acquisition or leasehold costs. The table outlining the estimated initial investment includes a line specifying this exclusion. The total estimated investment ranges from $2,650,870 to $3,829,400, but this figure does not account for the costs associated with acquiring land or leasing property.
Bojangles requires franchisees to submit information about proposed sites for approval and carefully evaluate each site to ensure it meets the brand's established criteria. The FDD notes that real estate costs can vary considerably depending on the location. Rent for unimproved property may range from approximately $8,000 to $16,500 or more per month, and franchisees may be required to pay first and last months' lease payments as a security deposit. Lease expenses may also include common area maintenance, insurance, taxes, fixed rent that may escalate, percentage rent based on the Restaurant's Gross Sales, and other charges related to the Restaurant.
Prospective Bojangles franchisees should factor in these additional real estate costs when planning their initial investment. The FDD advises consulting a real estate professional in the franchisee's geographic area before purchasing a franchise. Understanding the potential real estate expenses is crucial for accurately assessing the financial feasibility of opening a Bojangles restaurant.