Bojangles
Bojangles offers quick-service chicken and biscuit restaurants. Known for Southern-style cuisine, it operates in the fast-casual dining sector.
About Bojangles
Bojangles OpCo, LLC., doing business as Bojangles, is an American regional chain of fast food restaurants that specializes in Cajun-seasoned fried chicken and buttermilk biscuits and primarily serves the Southeastern United States. The company was founded in Charlotte, North Carolina in 1977 by Jack Fulk and Richard Thomas.
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Bojangles franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a traditional, free-standing Bojangles Restaurant ranges from $2,650,870 to $3,829,400. This includes a mandatory payment of $35,000 to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee for each Individual Franchise Agreement is $35,000 and is payable upon execution of the Individual Franchise Agreement [p.18].
What are the ongoing royalty and advertising fees?
Ongoing royalty fees are based on a percentage of monthly sales, generally ranging from 3% to 5% for U.S. franchisees and 5% for international franchisees [p.344]. These fees are recognized as revenue on an accrual basis as franchise sales occur. Additionally, franchise contributions to marketing and co-op advertising funds are calculated as a percentage of restaurant sales or based on a fixed monthly fee per restaurant, and these contributions also relate to the Company's performance obligation under the franchise agreement [p.522].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the length of the initial franchise agreement or the renewal process beyond mentioning that the terms of agreements may differ from this Agreement [p.196] and conditions for non-renewal exist [p.361].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot sell or transfer your franchise without the Franchisor's prior written consent [p.98]. Additionally, if you fail to provide adequate assurances or a performance bond as specified in Paragraph VIII.C.(6), the Franchisor may refuse such transfers [p.98].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so [p.361]. Additionally, if there is a royalty fee reduction that terminates, the franchisee must then pay the standard royalty fee rate immediately [p.557].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you need to have at least $1,350,000 in liquid assets and $2,500,000 in net worth, according to the FDD on page [p.343].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the franchisor within your assigned area [p.49].
What training and ongoing support does the franchisor provide?
The franchisor provides pre-opening services such as training and inspections, as well as ongoing services like development of training materials and menu items, and restaurant monitoring and inspections [p.521, p.493]. These services are considered part of a single performance obligation related to providing the right to use the franchisor's intellectual property [p.521, p.493].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can disclose actual or potential financial performance information for its franchised and company-operated outlets [p.63]. However, this information should not be considered as a guarantee of future results for new franchisees [p.63], and other than the financial performance representation in Item 19, no financial performance representations are made [p.77].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the menu items, products, and services that the franchisor has expressly approved for sale in writing as part of the Bojangles System, including any future additions. You must purchase proprietary seasonings, specially formulated pre-prepared mixes, and other specified items from designated suppliers. Additionally, you may buy all other food items, ingredients, equipment, furnishings, supplies, materials, and services only from approved suppliers who meet certain standards and are approved in writing by the franchisor [p.30, p.31].