Bojangles Franchise Cost, Profit, Failure Rate 2024

If you are considering starting a Bojangles franchise, this article will provide the information you need to make an informed decision.

We’ll discuss the franchise fees, profit potential, total investment, training and support available from Bojangles, restrictions on ownership and renewal policies, as well as the estimated return on your investment.

With all this information, you can determine whether or not investing in a Bojangles franchise is right for you. Read on to learn more about becoming a Bojangles Franchisee.

Bojangles Franchise

About Bojangles & Franchise History

Founded in 1977 by Jack Fulk and Richard Thomas, Bojangles’ began as a single restaurant near Charlotte, North Carolina. This first store was located at 5006 South Blvd., where it still stands today. By 1983, the company had grown to 32 locations and went public on NASDAQ under BOJA.

In 1990, Bojangles’ completed the first true franchise sale and continued to grow through franchising. In 1995, Bojangles began offering stock options to all its employees.

By 2000, there were over 300 Bojangles’ restaurants in 10 states throughout the Southeast and Mid-Atlantic regions of the United States. The same year, the company moved its headquarters to Charlotte and began rolling out new menu items such as breakfast platters and Bo-Tato Rounds®.

In 2004, the company introduced two beverage innovations: Sweet Tea and freshly-brewed Iced Coffee. The following year, Bojangles’ opened its 400th restaurant and unveiled its new logo.

By 2010, Bojangles’ had 500 restaurants across the Southeast and Mid-Atlantic regions, including locations in Florida, Georgia, North Carolina, South Carolina, Virginia, Tennessee, and Maryland. In 2012, Bojangles’ opened its 600th location in Lumberton, NC.

By 2018, Bojangles’ had grown to over 750 locations in 11 states and Washington, D.C. They are now the fourth-largest chicken restaurant chain in the United States. Customers have recognized them for their Famous Chicken ‘n Biscuits®, Legendary Iced Tea®, and other home-style menu favorites.

Today, Bojangles continues to expand its reach by offering franchising opportunities throughout the United States and worldwide. Bojangles is committed to providing customers with delicious meals for breakfast, lunch, dinner, and beyond.

It is one of the 10 Best Fried Chicken Franchise Opportunities in 2024.


Bojangles Franchise Model

Cost or FeeAmount or Percentage
Initial Investment$1.5 million and $2.5 million 
Initial Franchise-Fee$15,000 to $15,000
Royalty4% of total monthly gross sales.
Area RequirementN/A
Total Outlets530 Units

Bojangles Franchise Revenue & Profit

Bojangles Franchise Revenue & Profit

A Bojangles franchise owner makes $1,896,000 in sales per year per year on average, as per the performance of 475 franchise units in the year 2022.

This number is based on the average sales of traditional units ($1,898,941) and express restaurants ($1,848,549) in 2022.

Moving on, with an estimated profit margin of 12%, we can say that a Bojangles franchise owner makes $227,520 in annual profit. This is how we calculated the net profit of Bojangles:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1896000.00
Rent11.00%(208560.00)
Insurance5.50%(104280.00)
Salaries22.00%(417120.00)
Franchise Royalty Fees5.50%(104280.00)
Utilities2.20%(41712.00)
Cost of Goods Sold (COGS)27.50%(521400.00)
Labor (Variable)14.30%(271128.00)
Total (Expenses)88.00%(1668480.00)
Net Profit12.00%227520.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Bojangles Franchise Payback Period

To find out the payback period of the Bojangles Franchise, let us do some calculations:

AVERAGE INVESTMENT$2,463,575
AVERAGE REVENUE PER OWNER$1,896,000
AVERAGE PROFIT PERCENTAGE12%
AVERAGE PROFIT PER YEAR$227520.00
AVERAGE PAYBACK PERIOD years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 2463575/227520= 10.8 Years based on median

The average investment for a Bojangles Franchise is $2,463,575.

With an average profit percentage of 12%, the average profit per year is $227,520.

This means that the average payback period for a Bojangles Franchise is approximately 10 years, and the total investment of $2,463,575 would be recovered within this period.


Bojangles Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019437434-3
2020434432-2
2021432496+64

For the Franchised outlets:

  • In 2019, the failure rate was (3)/437×100≈0.69%
  • In 2020, the failure rate was (2)/434×100≈0.46%
  • In 2021, the growth rate was (64)/432×100≈14.81%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019319312-7
2020312326+14
2021326277-49

For the Company-Owned outlets:

  • In 2019, the failure rate was (7)/319×100≈2.19%
  • In 2020, the growth rate was (14)/312×100≈4.48%
  • In 2021, the failure rate was (49)/326×100≈15.03%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019756746-10
2020746758+12
2021758773+15

For Total outlets:

  • In 2019, the failure rate was (10)/756×100≈1.32%
  • In 2020, the growth rate was (12)/746×100≈1.60%
  • In 2021, the growth rate was (15)/758×100≈1.97%

According to the above-mentioned data, we can see that the franchised outlets for Bojangles declined from 2019 to 2020, showing a failure rate between 0.69% and 0.46%. However, in the year 2021, the franchise outlets increased rapidly, showing a growth rate of 14.81%.

On the other hand, for company-owned outlets, the failure rate of Bojangles was quite high, lying in the range between 2.19% and 15.03% for the years 2019 and 2021.

 The company managed to increase its outlet in the year 2020, showing a growth rate of 4.48%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Bojangles franchise started with failure rate of 1.32% in the year 2019 but then expanded in the years 2020-2021 showing a total growth rate between 1.60% and 1.97%.

 


Bojangles Support & Training

Naturally, they will teach a new franchisee their tactics and procedures. To run a successful business inside our tried-and-true system.

They also ensure that every Bojangles site has everything they need to succeed, from adequate space and equipment to a thorough understanding how to prepare their unique recipes.

In addition, Their marketing initiatives will assist in attracting local clients and maintaining a steady flow of visitors to your business.


What Are The Options For Funding?

Review the financial criteria on the Bojangles franchising website, including cash-on-hand requirements.

Check Bojangles for information on in-house financing for franchisees. When it comes to financing a Bojangles, you have a few options:

  • A handful of online business lenders provide up to $1 million in loans.
  • Obtaining a bank loan large enough to pay a substantial chunk of Bojangles’ start-up costs.
  • SBA loans are typically more expensive than traditional term loans from banks or online lenders.

Bojangles Agreement & Renewal

The original franchise term is 20 years from the date of the Franchise Agreement or until the restaurant location’s initial lease term expires or is terminated, whichever comes first.

There are two additional 10-year terms possible, subject to contractual conditions.

If opening a chicken franchise appeals to you, consider Church’s ChickenSlim Chicken, and Bonchon Chicken as viable options.


Bojangles Comparison

CompanyBojanglesBonchon
Founded In19772002
Initial Investment$1.5 million-$2.5 million $503,879-$1,099,004
Franchise-Fee$15,000$40,000
Total Outlet530300
Annual Revenue1.3 Billion$77 Million

Frequently Asked Questions

Is Bojangles' stock traded on a stock exchange?

Bojangles has been a publicly-traded company since 2015, when Advent International Corp, a private equity group, listed it on the stock exchange.

What is the location of the Bojangles headquarter?

Charlotte City, North Carolina, in the United States.

What is the slogan for Bojangles?

It’s the first time the corporation has used a celebrity to promote the tagline “It’s Bo time,” according to the company.

Does Bojangles offer franchising?

Yes, Bojangles offers fantastic franchise opportunities. Their loyal fans are driving the business and helping them to multiply.

How much does a Bojangles franchise cost?

Starting a Bojangles Franchise requires an initial investment of $1.5 million and $2.5 million, with a franchise fee of $15,000.

Who is the founder of Bojangles?

The founder of Bojangles is Richard Thomas (R.T.) Bond, Sr. He and his partner Jack Fulk opened their first restaurant in Charlotte, North Carolina in 1977. Since then, Bojangles has grown to nearly 800 locations across the United States and internationally. R.T. Bond passed away in 2006, but his family owns and operates the company.

Who owns Bojangles?

In 2019, Bojangles was acquired by Jordan Company and Durational Capital Management, making it a privately held company.

How many locations does Bojangles have?

As of 2024, there are 818 Bojangles restaurants in the United States.

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