If you’re a big food lover who wants to turn your passion into a flourishing business, you may be interested in fast food franchising with Bojangles. If you’re a fan of southern fried chicken and biscuits, even better. Bojangles is known for its bold southern flavor and signature chicken biscuits, with over 750 locations across southeastern U.S. states. Starting a Bojangles franchise is an exciting possibility, but something that requires careful consideration of the upfront costs.
A Bojangles franchise costs around $2 million on average, while the lowest cost is $1.5 million and the highest cost is $2.5 million. This general range can help you decide whether a Bojangles franchise is right for you, but remember there are a lot of factors that have an impact on your total investment cost. The franchise location, real estate acquisition, building requirements, construction costs, necessary licensing, and staffing expenses all contribute to the total price of opening a Bojangles franchise.
- How Much Is A Bojangles Franchise?
- Step By Step Breakdown of Bojangles Franchise Costs
- What Else Should You Know About Bojangles Franchises?
- Final Considerations On Bojangles Franchise Costs
How Much Is A Bojangles Franchise?
The cost of opening a traditional Bojangles restaurant averages about $2 million. The company requires franchisees to meet certain financial criteria before they are approved, which means there is a higher upfront investment for Bojangles than some smaller food businesses. Most franchisees pay a minimum of $1.5 million and the costs can be as high as $2.5 million. The million-dollar cost of opening a Bojangles franchise is in line with other fast food restaurants as part of a $650 billion U.S. industry that continues to grow.
The total Bojangles investment varies based on the amount of work needed at the site, required utilities and licenses, and restaurant equipment. The costs of labor and material often vary from region to region and can also influence the final budget. The initial franchise fee of $25,000 may seem relatively low, but keep in mind Bojangles requires franchise applicants to have a net worth of at least $1 million and net liquid assets of $500,000. Applicants must also demonstrate a successful background in restaurant operation, management, and/or ownership.
Average Costs Overall
|Initial Franchise Fee||$25,000|
|Minimum Total Investment||$1,500,000|
|Maximum Total Investment||$2,500,000|
|Average Range||$1,500,000 — $2,500,000|
Source: Franchise Direct
Average Bojangles Franchise Cost Breakdown
|Initial Franchise Fee||$25,000|
|Insurance||$4,000 — $7,000|
|Pre-Opening Staff Expenses||$33,000 — $64,000|
|Site Selection||$100 — $10,000|
|Building||$730,000 — $870,000|
|Site Work||$310,000 — $840,000|
|Soft Costs||$50,000 — $120,000|
|Equipment/Signage/Furniture/Fixtures||$340,000 — $390,000|
|Initial Inventory||$10,000 — $22,000|
|Business Licenses/Utility Deposits||$2,500 — $14,000|
|Additional Funds To Cover 3 Months||$15,000 — $150,000|
|Total Costs||$1,500,000 — $2,500,000|
Source: Franchise Direct
Step By Step Breakdown of Bojangles Franchise Costs
Founded by Jack Fulk and Richard Thomas in Charlotte, North Carolina, Bojangles has been around since 1977. The family-friendly restaurant is known for its famous cajun fried chicken and buttermilk biscuits, with hundreds of franchise locations in 14 southeastern states. Out of over 750 locations, the most are in North Carolina, but Bojangles also has a growing presence in Alabama, Arkansas, Florida, Georgia, Illinois, Kentucky, Maryland, Mississippi, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia. Let’s check out the key steps of opening your own Bojangles franchise and how much you can expect to pay to pursue this fast food business opportunity.
Initial Franchise Fee ($25K)
The first step in officially joining the Bojangles franchise is covering the franchise fee. This fee allows you to become part of the Bojangles family and get access to all the necessary branding, equipment, and inventory to produce the fan-favorite southern-style chicken and biscuits. While the initial franchise fee for Bojangles is similar to other food and retail franchises, remember the stringent application requirements for Bojangles mean you need over a million dollars just to get started.
You should always budget $25,000 for the initial Bojangles franchise fee.
Insurance ($4K — $7K)
Opening a Bojangles franchise also requires company insurance to protect against significant losses. You won’t be able to move ahead with construction projects or actually open the doors until the insurance is in place. As a company, Bojangles is committed to the long-term success of its franchises and doesn’t want to see businesses close their doors. That’s why there are premiums on the insurance and overall costs of setting up your own Bojangles.
On average, Bojangles franchise insurance costs $4,000 — $7,000 to start with.
Pre-Opening Staff Expenses ($33K — $64K)
Bojangles prides itself on great food and great customer service. There’s a lot to learn when starting your own franchise, from the operating procedures and recipes to promotional materials and Bojangles policies. You need to budget for staff salaries as you prepare for opening day, as well as any related travel and living costs. It’s worthwhile to invest in good people who will carry the Bojangles brand forward in your new location.
To cover the pre-opening salaries, travel, and living expenses throughout your initial training period, plan on paying around $33,000 — $64,000 depending on the size of your team.
Site Selection ($100 — $10K)
Bojangles has a site criteria checklist you must follow when selecting the spot for your new franchise. You have to decide on the business location and go through the approval process before moving ahead with building improvements and fit-outs. Bojangles has franchise support specialists who assist with the entire process, including choosing the right site that has the best chance of success.
During this step of opening a Bojangles franchise, expect to pay anywhere from $100 — $10,000 to finalize the site selection.
Building ($730K — $870K)
The building itself is one of the largest expenses when opening a new Bojangles. It needs to be suitable for busy fast food operations, with the option to easily customize the design to fit the Bojangles look and feel. Along with the site selection, this is a crucial step in getting the final approval from Bojangles and putting your franchise plan on the path to exciting success.
Plan on paying $730,000 — $870,000 for the building.
Site Work ($310K — $840K)
Next, it’s time to consider the purchase site work construction costs of building the new Bojangles. A hefty amount of materials and labor are involved to produce a traditional freestanding Bojangles restaurant, complete with a drive-thru and ample dine-in seating for around 50-80 guests. A large commercial kitchen and order counter have design requirements laid out by Bojangles, and it usually takes a few months or even up to a year to get everything done.
Most Bojangles franchisees pay $310,000 — $840,000 for site work building costs.
Soft Costs ($50K — $120K)
When thinking about building and construction totals, you also need to factor in soft costs. These indirect construction costs cover the legal, architectural, and engineering fees, as well as construction permits, taxes, and insurance. Soft costs can add up if you’re not paying attention, especially with a big project like opening your own fast-food franchise. These fees will depend on which region you’re in and how extensive the architectural and engineering plans are.
Bojangles franchise soft costs average $50,000 — $120,000.
Equipment/Signage/Furniture/Fixtures ($340K — $390K)
To bring everything together in your new Bojangles franchise, you need the right equipment and signage. From the foodservice equipment to the signature red Bojangles sign, all the equipment needs to be sourced and installed before you can open the doors. Seating furniture and lighting fixtures can also add up, but these are necessary costs that help put the finishing touches on an exciting new franchise location in a growing company.
Covering the Bojangles equipment, signage, furniture, and fixtures costs $340,000 — $390,000 on average.
Initial Inventory ($10K — $22K)
Also, on the to-do list when budgeting for a Bojangles franchise is the initial inventory. You need to have enough food products to get the business off the ground and ensure you can provide proper service to your customers. In addition to the famous fried chicken, Bojangles also has a wide variety of salads and sweets. You need enough of everything to complete the menu and ensure you have enough stock to last for several months.
Securing the initial inventory for opening a Bojangles franchise typically costs $10,000 — $22,000.
Business Licenses/Utility Deposits ($2.5K — $14K)
While the rest of the plan is in motion, you also need to think about the required business licenses and utility deposit payments to get up and running. Research the local permits in your area to understand what final paperwork you need to file before opening the doors. Securing your connection to water and electricity utilities may also cost a bit of money, but it’s an important step to finalizing a new Bojangles franchise.
The average cost of business licenses and utility deposits for a new Bojangles restaurant is $2,500 — $14,000.
Additional Funds To Cover 3 Months ($15K — $150K)
When it’s all said and done, you need backup funds to maintain normal Bojangles business operations for the first three months. Starting a business always has its ups and downs, and you need to be prepared for the unexpected while getting a new fast food restaurant established in the community. Bojangles is selective about prospective franchisees and only approves those with the finances to back the business up for that reason.
The average cost of additional funds to cover several months of Bojangles fast food operations is $15,000 — $150,000.
What Else Should You Know About Bojangles Franchises?
Bojangles continues to grow, moving into new markets like Texas, Ohio, and Washington D.C. The quick-service food industry is fast-paced and in high demand, so while the initial investment is high, so is the profit potential. As a company, Bojangles is especially interested in franchisees who are willing to open three, four, or five new Bojangles in the next five years.
Bojangles also offers franchise opportunities for express restaurants, with a $15,000 initial franchise fee and an average total cost of $850,000, although costs can range from $415,000 — $1.3 million. With both the traditional Bojangles restaurant and the express locations, there is a 4% royalty on total monthly gross sales, plus fees for interest, cooperative advertising, and on-site support.
One other thing to keep in mind is that Bojangles does not provide direct financial assistance or indirect financing. Bojangles does not guarantee any franchisee’s lease, obligation, or note, so you need to obtain the capital yourself.
Final Considerations On Bojangles Franchise Costs
Bojangles charges an initial franchise fee of $25,000 for a traditional restaurant but requires interested applicants to prove a $1 million net worth or higher, plus at least $500,000 in net liquid assets. The average cost range of $1.5 million — $2.5 million gives you a good idea of how much you will need, but don’t forget the final cost will depend on several factors, including real estate acquisition, building upgrades, staffing expenses, and location licensing requirements.
A traditional restaurant costs more than an express restaurant, especially in terms of building location and site work. Furniture, inventory, staff, and license requirements will also influence the business bottom line. In addition to the financial implications, it’s important to consider the advantages and risks of opening a Bojangles franchise. There is a significant amount of time and labor involved in getting a full-scale fast food restaurant up and running, as well as the continued commitment to successfully operate the business for years to come.
Although a lot of work goes into operating a Bojangles restaurant, franchisees have the opportunity to turn a good profit with an average annual sales volume of $1.8 million. If you’re passionate about delicious chicken and biscuits and eager to share great fast food with your community, that’s all the more reason to take this franchise opportunity seriously. Weigh up the total investment, the risks, and the benefits to decide if you’re ready to take on a Bojangles franchise in the near future.
Interested in exploring more franchising opportunities? View our online resources for up-to-date cost guides on opening a new food franchise. You may also be interested in Popeyes Franchise Costs.