Is
Bojangles’ Famous Chicken 'n Biscuits
a franchise?
How many
Bojangles’ Famous Chicken 'n Biscuits
franchises
are there?
What are the
Bojangles’ Famous Chicken 'n Biscuits
franchise
fees?
Initial Franchise Fee ($25,000)
The initial fee to establish a Bojangles’ franchise is $25,000.
Royalty Fee (4% of Gross Sales)
Franchisees are obligated to pay a royalty fee, which is computed as 4% of their Gross Sales.
Advertising (4% of Gross Sales)
Franchisees are required to contribute a total of 4% of Gross Sales towards advertising. This is broken down as:
- Marketing Development Fund: 1% of Gross Sales is directed towards the Marketing Development Fund.
- Local Marketing Expenditure: Franchisees are mandated to allocate at least 3% of their Gross Sales for local marketing, which is reduced by amounts spent on cooperative advertising.
Transfer Fee ($5,000)
This fee is applicable when there's a transfer of the franchise.
Renewal Fee (50% of then-current franchise fee)
For franchisees who wish to renew their franchise agreement, they are charged a renewal fee which is 50% of the prevailing franchise fee at the time of renewal.
Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.
How much does
it cost
to start a
Bojangles’ Famous Chicken 'n Biscuits
franchise?
Bojangles’ Famous Chicken 'n Biscuits offers franchise opportunities for individuals and entities looking to operate a quick-service chicken and biscuit restaurant under the Bojangles’ name. Here's a brief overview of the investment required for different types of Bojangles’ Restaurants:
- Traditional, free-standing Bojangles Restaurant: The total investment for this type of restaurant ranges from $2,265,500 to $3,647,200. This includes a $35,000 fee that must be paid to Bojangles.
- Bojangles Express Restaurant developed as part of another retail operation: The investment for this model ranges from $622,500 to $1,576,700, which includes a $20,000 fee payable to Bojangles.
It's important to note that these estimates do not include the cost of acquiring real estate. If you decide to sign a Development Agreement to develop multiple Bojangles Restaurants, you'll need to pay a development fee of $10,000 for each restaurant you commit to develop. This fee will be credited against the franchise fee you pay for each restaurant you develop.
Initial Investment for Traditional Bojangles Restaurant:
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Does
Bojangles’ Famous Chicken 'n Biscuits
provide
training
to its
franchisees?
For those interested in becoming a franchisee, Bojangles offers a comprehensive training program to ensure that franchisees are well-equipped to operate their restaurants effectively.
This program is designed to familiarize franchisees with the operational techniques specific to Bojangles. The training encompasses various aspects of running the restaurant, including how to maintain the brand's operational standards.
The training program is not just limited to the franchisees. Bojangles emphasizes the importance of training for all staff members. As such, franchisees are also required to implement a training program for their employees, ensuring that they meet the standards set by Bojangles.
In addition to the initial training, Bojangles provides continuous operational training programs. These programs are designed to reinforce the brand's operational standards, ensuring that every Bojangles restaurant maintains the quality and service the brand is known for.
Does
Bojangles’ Famous Chicken 'n Biscuits
provides
territory
protection?
When franchisees sign a Development Agreement with Bojangles’, they are granted a territory, referred to as an "Assigned Area" in the Development Agreement. The Assigned Area will be described by various factors such as street boundaries, political subdivisions, or specific locations, intersections, or market areas.
The determination of the Assigned Area is based on factors like population, traffic patterns, trade areas, and proximity to business generators like schools and hospitals. Franchisees must always obtain Bojangles’ approval for each specific Restaurant location within the Assigned Area. If Bojangles’ approves the location, a franchise is granted for that specific location only.
Can a
Bojangles’ Famous Chicken 'n Biscuits
franchise
be run as
a passive
investment?
For those considering a franchise with Bojangles’ Famous Chicken 'n Biscuits, active participation in the business is a key requirement. If the franchisee operates as a business entity, a "Managing Owner" must be appointed.
This individual should hold a significant ownership interest and is responsible for overseeing the general conduct of the business. Additionally, the franchisee must have a "Principal Operating Officer" or "Principal Operating Partner" in place. This person should own at least 10% of the equity interests during their tenure in this role and must devote their full time and best efforts to the supervision and conduct of the restaurants.
Moreover, the franchised restaurant should always be under the direct, on-premises supervision of a restaurant manager who has satisfactorily completed Bojangles’ initial training program.
