What do the utility deposits and business licenses cover in the initial investment 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 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 estimated initial investment for utility deposits and business licenses ranges from $220 to $23,500. These costs are paid to utility companies and government authorities as incurred. This expenditure is part of the total estimated initial investment, which ranges from $2,650,870 to $3,829,400, excluding real estate acquisition or leasehold costs.
The "Utility deposits & business licenses" line item covers the expenses associated with setting up utility services (such as electricity, gas, water, and sewer) and obtaining the necessary licenses to legally operate the Bojangles restaurant. The wide range in cost reflects differences in local regulations, deposit requirements, and the specific utilities needed at the restaurant location. For example, a location in a densely populated urban area might have higher license fees or deposit requirements than a rural location.
Prospective franchisees should budget for these expenses as part of their initial setup costs. It is important to research local requirements and obtain accurate quotes from utility providers and licensing authorities to refine this estimate. The FDD indicates that these payments are made "as incurred," meaning they will likely be due at various stages during the pre-opening phase. Franchisees should also confirm with Bojangles whether the higher end of the range is more typical, and whether Bojangles has any relationships with utility companies that could reduce the deposit amounts.