Franchising Since: 1978
Headquarters: Charlotte, North Carolina
Estimated Number of Units: 825
Franchise Description: Bojangles Opco, LLC is the franchisor. Bojangles restaurants offer different menus of quality food products in different geographic areas of the country, including a more limited menu not offering breakfast all day nor bone-in chicken. The menus may emphasize a special selection of breakfast items such as buttermilk biscuits with chicken filet, steak, sausage, country ham, bacon, egg, cheese, jelly, and/or melted butter. During lunch and dinner hours, the menus may feature bone-in chicken (in certain markets) or boneless chicken tenders (in other markets) served with various side orders. Applicants must be a corporation or a limited liability company, as approved by the franchisor, to be eligible to buy a franchise.
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Territory Granted: For a Franchise Agreement, franchisees will receive the right to establish one restaurant in a specific location and they will not receive any protected territory around that location. Franchisees may only solicit sales and orders, fulfill orders, and prepare and sell food from their restaurant location(s); and they may deliver food only to customers at their restaurant location(s); however, they are not restricted from advertising outside their location if all sales are made from their restaurant location(s).
Obligations and Restrictions: Franchisees must be a corporation or a limited liability company composed solely of no more than six shareholders/members who are natural persons and not corporations, limited liability companies, or any other legal entities in order to be a developer or franchisee. In addition, the franchise entity cannot be owned by two owners who each own 50% of the ownership interests. The franchised restaurant must at all times be under the direct, on premises supervision of a manager who has satisfactorily completed the initial training program. Franchisees must use the restaurant premises solely for the operation of the franchised restaurant and keep the restaurant open and in normal operation for such minimum hours and days as the franchisor may periodically specify or approve in writing. Franchisees must not use, or permit the use of, the restaurant premises for any other purpose or activity at any time without first obtaining the franchisor’s written consent. Franchisees may sell Bojangles’ products only at the location specified in the Franchise Agreement. Franchisees must offer and sell all products and services which are part of the Bojangles’ system, and all services and products the franchisor incorporates into the Bojangles’ system in the future.
Term of Agreement and Renewal: The length of the initial franchise term is the earlier of 20 years from the date of Franchise Agreement or upon expiration or termination of the initial term of lease (if any) of the restaurant location. Two additional consecutive terms of 10 years each are available, subject to contractual requirements. (The length of the initial franchise term for an express franchise agreement is 10 years with no renewal rights.)
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Estimated Initial Investment
Traditional Restaurant
| Name of Fee | Low | High |
| Franchise Fee | $35,000 | $35,000 |
| Insurance | $5,000 | $21,000 |
| Pre-opening Salaries, Travel, Living Expenses during Initial Training | $144,550 | $166,500 |
| Site Selection | $100 | $10,000 |
| Building | $1,100,000 | $1,300,000 |
| Site Work | $625,000 | $1,135,000 |
| Soft Costs | $140,000 | $200,000 |
| Equipment, Furniture, Signage and Fixtures | $550,000 | $690,000 |
| Initial Inventory | $20,000 | $62,000 |
| Utility Deposits & Business Licenses | $220 | $23,500 |
| Additional Funds (3 months initial phase) | $31,000 | $186,400 |
| ESTIMATED TOTAL (does not include real estate acquisition or leasehold costs) | $2,650,870 | $3,829,400 |
Express Restaurant
| Name of Fee | Low | High |
| Franchise Fee | $20,000 | $20,000 |
| Insurance | $5,000 | $21,000 |
| Pre-opening Salaries, Travel, Living Expenses during Initial Training | $144,550 | $166,500 |
| Upfitting Costs | $327,000 | $705,000 |
| Equipment, Furniture, Signage and Fixtures | $231,000 | $702,500 |
| Initial Inventory | $20,000 | $62,000 |
| Utility Deposits & Business Licenses | $220 | $23,500 |
| Additional Funds (3 months initial phase) | $30,900 | $186,400 |
| ESTIMATED TOTAL (does not include real estate acquisition or leasehold costs) | $778,670 | $1,886,900 |
Other Fees
| Type of Fee | Amount |
| Standard Royalty | 4% of total monthly gross sales. |
| Marketing Development Fund | 1% of total monthly gross sales. |
| Local Marketing Expenditure | 3% of total monthly gross sales less amounts spent on cooperative advertising. |
| Local Marketing – Advertising Technology Vendors | Currently, $153 per restaurant. |
| Cooperative Advertising | Typically, 2% of gross sales. |
| Audit | Deficiencies in amounts owed, plus interest. |
| Interest | 1.5% per month compounded monthly or the maximum rate permitted by law, whichever is less. |
| Transfer | $5,000 per restaurant. |
| Renewal | 50% of franchise fee in effect at time of renewal. |
| New Product and Supplier Testing | The franchisor’s reasonable expenses (estimated at $4,800 - $12,900). |
| Training – Optional Programs | Then-current training fee. |
| On-site Support | $2,500 per person per week. |
| Costs and Attorneys’ Fees | The franchisor’s costs and expenses. |
| Reimbursement of Insurance Costs | Cost of procuring insurance and the franchisor’s expenses. |
| Indemnification | The franchisor’s losses and expenses. |
| Taxes | The franchisor’s expenses. |
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