Bottom line
- Total investment $720K – $3.8M including a $35K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $2.4M/year (median $2.1M).
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 28 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Bojangles unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Bojangles units return on equity?
Equity IRR · 5-yr
27.7%
3.40× MOIC
Year-1 DSCR
2.93×
EBITDA ÷ debt service
Equity required
$11.5M
on $23.5M purchase
Total debt
$12.1M
SBA $5.0M + senior + seller note
Overview
About
Bojangles franchisees operate quick-service restaurant locations specializing in fried chicken, biscuits, and breakfast items. Day-to-day operations include managing kitchen and front-of-house staff, inventory procurement, food preparation, customer service, marketing, and P&L management across what is typically a single location with $2.35M in average annual revenue.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Bojangles presents moderate-to-cautious risk: slow growth, unprotected territories, active litigation, high capital requirements, and opaque profitability data warrant deep validation before $700K+ commitment.
Score breakdown · what drove the 46 / 100 rating
- 01MINORSlow unit growth (4.1% YoY) indicates mature/declining system momentum with only 813 units
- 02MEDHigh initial investment range ($720K-$3.8M) with 4% royalty burden and no disclosed net income data creates profitability uncertainty
- 03HIGHThree pending/recent litigation cases involving audit rights, confidentiality violations, and deceptive practices suggest franchisor-franchisee tension and governance issues
- 04MINORNo protected territory exposure creates direct competition risk and cannibalization potential within franchise system
- 05MEDMissing Item 19 (Average Unit Volumes) prevents validation of $2.35M average revenue claim and actual profitability benchmarks
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bojangles · FDD (2024) PDF