Are the utility deposits generally refundable for a Bojangles restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
pening of the Restaurant.
7 Utility deposits and business licenses. Generally, you will need to submit deposits for utilities. The amount of the deposits will vary depending upon the practices of the utility companies. Generally, these deposits are refundable under the utility company's terms. The locality in which you place your Restaurant may also require a business license which may require you to pay a fee. There may also be impact fees or other like development fees charged by the municipal authority or utility company.
8 Additional funds (3 months initial phase). You will need capital to support on-going and miscellaneous expenses to the extent these costs are not covered by sales revenue. New businesses often generate a negative cash flow for some period of time.
Source: Item 9 — Initial inventory. The estimate covers initial inventory of products, including food and paper products, and cleaning, office and general supplies for the opening of the Restaurant. (FDD pages 27–30)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, utility deposits are generally refundable. The FDD states that franchisees will likely need to submit deposits for utilities, and the amount will vary based on the utility companies' practices. However, these deposits are generally refundable under the utility company's terms. The locality where the Bojangles restaurant is located may also require a business license, which may involve paying a fee, as well as potential impact fees or other development fees charged by the municipal authority or utility company.
Prospective Bojangles franchisees should be aware that while utility deposits are generally refundable, the initial outlay for these deposits, along with business licenses and other fees, can range from $220 to $23,500. This amount is part of the initial investment needed to start the franchise. Franchisees should factor in these costs when planning their finances and ensure they have sufficient capital to cover these expenses.
It is important for franchisees to understand the specific terms and conditions of the utility companies in their area regarding the refund of deposits. They should also research the business license requirements and any other fees imposed by the local authorities. This due diligence will help them accurately estimate their initial costs and avoid any unexpected financial burdens. Consulting with a business advisor or certified public accountant is recommended to review these figures carefully before making a decision to purchase the franchise.