Under what condition are Bojangles franchisees' initial fees and payments deferred?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
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BOJANGLES FRANCHISE AGREEMENT
EXHIBIT A
FRANCHISE INFORMATION
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- Franchisee: [FRANCHISEE ENTITY]
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- Franchise Fee: $35,000 due by the Construction Commencement Deadline. [If a Development Agreement credit applies, add: Notwithstanding the foregoing, Franchisee shall receive a credit against the Franchise Fee in the amount of [$5,000 or $10,000 – check the Development Agreement form] from a development fee paid by Franchisee pursuant to the Development Agreement between Franchisee and Franchisor dated as of [DATE]. As su
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the franchise fee of $35,000 is due by the Construction Commencement Deadline. However, this fee may be subject to a credit if the franchisee has previously paid a development fee under a Development Agreement.
Specifically, if a Development Agreement credit applies, the franchisee may receive a credit of either $5,000 or $10,000 against the franchise fee. This credit comes from the development fee that the franchisee paid under the Development Agreement with Bojangles. The exact amount of the credit, whether $5,000 or $10,000, is specified in the Development Agreement form.
Therefore, the total franchise fee due from the franchisee by the Construction Commencement Deadline is the standard $35,000, less the applicable development fee credit. The specific amount will be detailed in the Development Agreement. This arrangement effectively defers a portion of the initial investment, as the development fee is paid upfront and then credited towards the franchise fee when construction begins.