Under what condition might a Bojangles franchisee receive a credit against the $20,000 franchise fee?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT A
FRANCHISE INFORMATION
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- Franchisee: [FRANCHISEE ENTITY]
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- Franchise Fee: $20,000. [If a Development Agreement credit applies, add: Notwithstanding the foregoing, Franchisee shall receive a credit against the franchise fee in the amount of $[10][5],000 (check the Development Agreement) from a development fee paid by Franchisee pursuant to the Development Agreement between Franchisee and Franchisor dated as of [DATE]. As such, the total fee due from Franchisee is $[Amount].]
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a franchisee may receive a credit against the franchise fee if a Development Agreement credit applies. Specifically, if the franchisee has entered into a Development Agreement with Bojangles and has paid a development fee, they may be eligible to receive a credit of either $5,000 or $10,000 (depending on the Development Agreement terms) against the $20,000 franchise fee. The specific amount of the credit is to be checked within the Development Agreement.
This credit is applied from the development fee already paid by the franchisee under the Development Agreement. The Development Agreement outlines the schedule and obligations for establishing multiple Bojangles restaurants. This arrangement is beneficial for franchisees looking to develop multiple locations, as it reduces the initial financial burden of the franchise fee for each restaurant.
Prospective franchisees should carefully review the terms of the Development Agreement to understand the specific credit amount and conditions. They should also confirm the date of the Development Agreement, as referenced in Exhibit A of the Franchise Agreement, to ensure all terms are consistent and applicable. This credit mechanism incentivizes multi-unit development and aligns the interests of both the franchisor and franchisee in expanding the Bojangles brand.