Bojangles Restaurants began as the dream of Jack Fulk and Richard Thomas, two veteran restaurant operators who predicted rising consumer demand for good food served in a quick-service environment. They based their concept on three attributes: distinctive flavor, high-quality products made from scratch, and a festive restaurant design with friendly service.
The inspiration for the name “Bojangles” comes from the popular song, Mr. Bojangles, originally recorded in 1968 by Jerry Jeff Walker and made famous by performers, such as Sammy Davis, Jr., and The Nitty Gritty Dirt Band.
The story goes that Jack Fulk heard the song on the radio one day when he was trying to name his new concept, and he said, “That’s it!” In 1977, their dream became a reality in the form of the first Bojangles restaurant in Charlotte, NC. A year later, Bojangles went on to open its first franchised location.
So you are excited about Chicken and biscuits and want a piece of the Bojangles action? What is it going to cost you to build a franchise store? We reviewed the Bojangles Franchise disclosure document (FDD), and the estimated initial investment ranges between $1,637,434 to $2,359,000 for a traditional freestanding unit.
How Much Money Can a Bojangles Franchisee Make?
$2,000,000 isn’t spare change for most people, so what should you expect if you decide to build a Bojangles store? To start off, the average sales of a Bojangles location is $1.9M and EBITDA is 11%, so you can expect to make $209,000 on an average location.
Is that a good return on investment for Bojangles? Well, if you spend $2,000,000 in order to make back just north of $200,000 then that is effectively a 10% return. Whether or not that is good for you, you should consult with your financial adviser before making investments.
You should also be cautious with the brand. Many sales figures are high for the “core” Bojangles markets but franchisees in new markets have been known to not replicate those results.
Estimated Initial Investment
The average cost to build a Bojangles Franchise store ranges from $1.6M to $2.36M. Here is how those costs break down:
- Franchise Fee: $25,000
- Insurance: $834
- Pre-Opening Salaries: $22,000-$39,500
- Site Selection: $100-$10,000
- Building: $720,000-$860,000
- Site Work: $436,000-$700,000
- Soft Costs: $56,000-$110,000
- Equipment, Furniture, Fixtures: $350,000-$428,000
- Initial Inventory: $10,000-$22,000
- Utility Deposits & Business Licenses: $2,500 – $12,000
- Additional Funds: $15,000-$150,000
- Total: $1,637,434 – $2,359,000
Bojangles Net Worth Requirement
Maybe you can find the money to build a new Bojangles, but along with that Bojangles is also going to check out your net worth. The current net worth requirement to become a Bojangles franchisee is a liquidity requirement of $500,000 with net worth of $1,000,000.
Royalties, Advertising Costs and Other Ongoing Fees
For most franchises (Bojangles is no different), the major ongoing expenses include Royalties and Advertising expenses. Here is how these costs break down for a Bojangles franchisee:
- Royalties: 4% of Sales
- Marketing and Development Fund: 1% of sales
- Local Marketing Expenditure: 3% of Sales
- Co-op Advertising: 2% of Sales
Financial Performance
- AUVs: $1.42M
- Food and Paper Costs: 31.5%
- Restaurant Labor: 29.6%
- Franchised Stores: 437
- Company-Operated Stores: 319
