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Bojangles' Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Bojangles' Franchise?
To open a Bojangles' franchise, you should be prepared for a significant initial investment ranging from $720,220 to $3,779,700. This includes a franchise fee of $20,000, along with additional costs for equipment, real estate, and other startup expenses. It's crucial to have cash of at least $1,500,000 and a net worth of $3,000,000 to qualify for ownership. These financial requirements are designed to ensure that franchisees have the resources to successfully operate their business from the outset.
What Are the Ongoing Fees Associated with a Bojangles' Franchise?
Bojangles' franchisees are required to pay a royalty fee of 4% of gross sales, along with a marketing fee of 1%. These ongoing fees contribute to the overall support and marketing efforts of the brand, which can help drive customer traffic to your location. Understanding these costs is essential for financial planning and ensuring that your franchise remains profitable over time.
What Is the Average Revenue Potential for a Bojangles' Franchise?
Bojangles' franchises have shown strong revenue potential, with an average annual revenue per unit of approximately $2,350,216. The median annual revenue is slightly lower at $2,058,526, while some units report revenues as low as $428,727 and as high as $7,208,035. This variance highlights the importance of location, management, and marketing strategies in achieving financial success in the franchise system.
How Long Does It Take to Break Even with a Bojangles' Franchise?
Franchisees can expect to reach their breakeven point within approximately 24 months of opening their Bojangles' location. Additionally, the investment payback period is around 30 months, meaning that franchisees should start seeing a return on their initial investment within this timeframe. These metrics are critical for potential franchisees to consider when evaluating the financial viability of their investment.
Bojangles' Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Bojangles' Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 773 | 788 | 813 |
| Net Change YoY | 15 | 25 | |
| Franchised Units | 496 | 507 | 528 |
| Net Change YoY | 11 | 21 | |
| Corporate Units | 277 | 281 | 285 |
| Net Change YoY | 4 | 4 |
Bojangles' Franchise Overview
Bojangles' is a fast-casual restaurant chain known for its Southern-style cuisine, particularly its fried chicken and biscuits. Founded in 1977 in Charlotte, North Carolina, Bojangles' has grown to become a beloved brand across the Southeastern United States. The franchise combines a strong regional identity with a commitment to quality, offering customers a taste of Southern hospitality in every meal.
Investment Requirements
Starting a Bojangles' franchise requires a substantial investment, with initial costs ranging between $720,220 and $3,779,700. The initial franchise fee is set at $20,000, while franchisees must maintain a cash reserve of $1,500,000 and a net worth of $3,000,000. These financial requirements underscore the importance of thorough planning and financial readiness for aspiring franchise owners.
Revenue Potential
Bojangles' units have shown impressive revenue potential, with average annual revenues reported at $2,350,216 per unit. The median annual revenue stands at $2,058,526, indicating a healthy income stream for franchisees. However, revenue can vary significantly, with the lowest annual revenue recorded at $428,727 and the highest reaching $7,208,035, showcasing the potential for both success and challenges.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 4% on gross sales, along with a marketing fee of 1%. These fees contribute to the overall operational costs but also provide franchisees with the benefits of brand recognition and marketing support from the corporate team, essential for driving customer traffic and sales.
Operational Performance
Bojangles' franchises operate with an average EBITDA of $49,369, which represents about 2.1% of revenue. While the gross profit margin is a healthy 69.2%, operating expenses are significant, amounting to 72.3% of revenue. Understanding these metrics is crucial for franchisees to manage costs effectively and optimize profitability.
Growth and Expansion
Bojangles' has demonstrated consistent growth, increasing its number of franchised units from 496 in 2021 to 528 in 2023. This upward trend reflects the brand's appeal and market demand. The company-owned units have also grown, indicating a balanced approach to expansion that combines franchising with corporate ownership to strengthen its market presence.
Frequently Asked Questions
The initial investment for a Bojangles' franchise ranges from $720,220 to $3,779,700. This includes the franchise fee, equipment, and other startup costs.