Under what conditions is the Bojangles development fee considered fully earned and non-refundable?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
velopment Fee
You must pay a development fee of $10,000 for each Restaurant that we authorize you to develop when you sign the Development Agreement regardless of whether you actually develop Restaurants after that time. When you sign the Development Agreement, you also will sign a Franchise Agreement for the first Restaurant that you plan to develop.
The development fee is fully earned and non-refundable in consideration of administrative and other expenses we incur in entering into the Development Agreement and for our lost or deferred opportunity to enter into the Development Agreement with others.
During our previous fiscal year, the development fee paid to us for each Restaurant under applicable development agreements was $10,000 for our standard development.
Franchise Fee
Under the Franchise Agreement, you must pay a franchise fee of $35,000 by the construction commencement deadline of the traditional Restaurant that you agreed to develop according to the development schedule in your Development Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 17–21)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the development fee is considered fully earned and non-refundable upon signing the Development Agreement. This fee is $10,000 for each restaurant that Bojangles authorizes a franchisee to develop. This applies regardless of whether the franchisee actually develops the restaurants after signing the agreement.
The rationale behind this non-refundable policy is to compensate Bojangles for the administrative and other expenses they incur when entering into the Development Agreement. It also covers the lost or deferred opportunity for Bojangles to enter into a Development Agreement with other potential franchisees.
In practical terms, this means that a prospective Bojangles franchisee needs to be certain of their commitment to developing the agreed-upon number of restaurants before signing the Development Agreement. The $10,000 per restaurant development fee is non-refundable, even if the franchisee later decides not to proceed with the development. However, Bojangles will credit the development fee towards the franchise fee of $35,000 for each restaurant, provided the franchisee signs the Franchise Agreement and commences construction by the specified deadline.