How to Finance a Bojangles Franchise: Multi-Unit Costs and SBA
By Chris Cornella
A Bojangles franchise loan is rarely a one-restaurant conversation. The chicken-and-biscuit brand is looking for experienced restaurant operators who can open several locations in a market, and its published investment ranges and financial requirements reflect that: a freestanding restaurant is a construction project, and the franchisor expects candidates to bring substantial liquid capital and net worth before any lender gets involved.
This article explains what it costs to open a Bojangles restaurant, how the brand’s development model shapes borrowing, where SBA 7(a) and 504 loans fit, what the brand’s SBA Franchise Directory notes mean in plain English, and how lenders typically evaluate a Bojangles deal for a new market, an existing restaurant or a multi-unit development schedule.
US Professional Funding is not affiliated with, sponsored by or endorsed by Bojangles; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchising website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Bojangles Franchise Loan at a Glance
- Initial franchise fee: $35,000 per location, according to Bojangles’ franchising website, which refers candidates to its April 20, 2026 Franchise Disclosure Document.
- Estimated initial investment, traditional freestanding restaurant: $2,851,880 to $3,951,200.
- Estimated initial investment, Express format: $780,780 to $1,858,700.
- Financial requirements: a minimum net worth of $2,500,000 and minimum liquid capital of $1,000,000, as listed on the franchising website.
- Development expectation: Bojangles says it looks for operators able to open at least three locations in their market.
- Royalty and marketing contributions: set out in Item 6 of the current FDD; confirm the rates there before building projections.
- System size: more than 880 systemwide restaurants in 24 states, according to a July 2026 company announcement.
- Training: a 13-week program in a certified training restaurant.
- SBA Franchise Directory: listed, with two notes about real estate collateral that are explained below.
What Is Bojangles?
Bojangles was founded in 1977 by Jack Fulk and Richard Thomas, who opened the first restaurant in Charlotte, North Carolina. The brand built its reputation on Southern-style fried chicken, made-from-scratch biscuits, sides it calls “fixin’s” and its Legendary Ice Tea. The franchisor entity is Bojangles Opco, LLC.
For decades Bojangles was concentrated in the Southeast. It is now growing well beyond that base. The company reported 25 restaurant openings across 12 states in the first half of 2026, including first entries into Michigan and Oklahoma, and said it expected to open its 900th location later in the year. Its franchising pages list target regions including New England, New York, the Midwest, South Central, the Plains, the Southwest and the West Coast.
A breakfast-heavy, three-daypart brand. Bojangles competes across breakfast, lunch and dinner, and its franchising materials emphasize the breakfast daypart. Restaurants offer drive-thru, dine-in and order-ahead options through the brand’s app and website.
Formats. The franchising website publishes investment ranges for two formats: a traditional freestanding restaurant and a smaller Express format. The company describes “flexible footprints” and a semi-open kitchen design in its refreshed restaurant designs.
A multi-unit system. Bojangles says 93% of its franchised restaurants are owned by multi-unit franchisees. That matters to lenders: they are usually underwriting an operating company with a development plan, not a single owner-operator buying one restaurant.
Why lenders view Bojangles the way they do. Lenders generally see an established brand whose franchisor screens candidates closely. New restaurants in markets where the brand is less known carry ramp-up risk, though, and freestanding construction concentrates capital in each site, so lender comfort rests on the operator’s track record, liquidity and site quality.
Bojangles Franchise Costs
Initial franchise fee. The franchising website lists a $35,000 franchise fee per location. Item 5 of the FDD explains when the fee is paid, how it applies under a development agreement and whether any portion is refundable. Bojangles has also advertised incentive programs that reduce initial fees for qualifying candidates; ask the franchise development team which programs, if any, are currently available.
Real estate, building and site work. For a traditional freestanding restaurant, construction is the single largest piece of the budget. A purpose-built building with a drive-thru means site work, utilities, paving and the building itself are major cost drivers. Item 7 of the FDD explains the assumptions behind the estimate, including whether land acquisition is part of it or whether the franchisee leases or ground leases the site.
Equipment, furniture, signage and fixtures. A Bojangles kitchen is built around frying, biscuit production and high-volume holding, plus drive-thru technology, point-of-sale systems, seating and exterior signage. This package is substantial and is often a natural fit for equipment financing.
Opening costs and working capital. Pre-opening payroll, training travel, initial inventory, insurance, deposits and licenses all land before the first sale. The FDD’s additional funds line estimates how much operating cushion a new restaurant needs during its initial phase.
Total investment. According to the franchising website, which cites the April 20, 2026 FDD, the estimated initial investment is $2,851,880 to $3,951,200 for a traditional freestanding restaurant and $780,780 to $1,858,700 for an Express location. The Item 7 table in the FDD typically breaks the estimate into these categories:
- Initial franchise fee
- Insurance
- Pre-opening salaries, training materials, travel and living expenses
- Site selection
- Building and site work
- Architecture, engineering, permits and other soft costs
- Equipment, furniture, signage and fixtures
- Initial inventory
- Utility deposits and business licenses
- Additional funds for the initial operating period
Read the full Item 7 table in the current FDD for each line item’s range and the assumptions behind it, and remember that a development agreement multiplies these costs across every restaurant on the schedule.
Ongoing Fees and How They Affect Your Loan
Royalty. Bojangles charges a continuing royalty based on gross sales. The rate is disclosed in Item 6 of the FDD, and the franchising website notes that some incentive programs have offered a reduced royalty during a restaurant’s first years. Confirm the rate that will apply to your restaurants, and whether any reduction expires, before building projections.
Marketing contributions. Franchisees typically contribute to a brand marketing fund and spend on local or cooperative advertising. Item 6 sets out each requirement and how cooperative spending interacts with local spending.
Technology and other fees. Technology, transfer, renewal and training fees also appear in Item 6, so read the whole table.
Remodels and image updates. Bojangles has been rolling out refreshed restaurant designs in key markets. Franchise agreements commonly require periodic upgrades, so an owner should know what reinvestment the agreement may require over the term.
How lenders factor these costs in. Royalty and marketing contributions are taken off the top of gross sales before rent, labor, food cost and debt service. Lenders build those percentages into projected cash flow, then test whether the restaurant can cover its loan payments with a reasonable cushion. For a new market, they will also look at how long sales may take to ramp and whether the borrower has enough working capital to carry the restaurant through that period.
Franchisor Requirements for New Owners
Bojangles is explicit that it is targeting established operators.
- Net worth and liquidity: the franchising website lists a minimum net worth of $2,500,000 and minimum liquid capital of $1,000,000.
- Multi-unit capability: the company says it looks for operators with the ability to open at least three locations in their market, and it describes the opportunity as designed for experienced restaurant operators with the resources to pursue multi-unit development.
- Experience: Bojangles prefers that the candidate or a business partner has restaurant development experience, including pre-opening planning, and says quick-service experience is a major benefit.
- Infrastructure: the ideal candidate has the infrastructure to manage a base of Bojangles restaurants, often by adding the brand to an existing restaurant portfolio.
- Training: a 13-week program in a certified training restaurant, with computer-based training also available.
The approval process. Bojangles outlines six steps: an interview with a Bojangles representative; reviewing the FDD and completing a nondisclosure agreement and application; submitting a financial qualification package; attending Discovery Day; franchisee validation and a business plan; and executing a development agreement. The franchisor also assists with site selection and letter of intent negotiations, and its construction team reviews plans and visits sites under construction.
The practical implication: franchisor qualification comes before the loan, and a borrower who clears Bojangles’ thresholds already shows lenders a visible equity injection and reserves.
Ways to Own a Bojangles
A new restaurant under a development agreement. Most new franchisees sign a development agreement covering several restaurants in a defined market. The financing is usually arranged restaurant by restaurant as each site is approved, with the first unit carrying the most underwriting scrutiny because there is no operating history yet. See how lenders approach franchise start-up financing for a ground-up opening.
Buying an existing restaurant. Existing Bojangles restaurants sometimes change hands between franchisees. A resale lets the lender underwrite actual sales and expenses rather than projections. The buyer still needs Bojangles’ approval, and the franchise agreement’s transfer conditions apply. See how we approach franchise restaurant acquisitions.
Adding Bojangles to an existing restaurant group. The brand explicitly courts operators who already run other restaurant concepts. For these groups, lenders typically consider the consolidated cash flow of the whole organization, which can support the first Bojangles units while they ramp.
Express locations. The Express format carries a lower investment range and may suit sites where a full freestanding building does not fit. Lenders treat Express units much like any leased restaurant: equipment, build-out and working capital rather than land and building.
Financing Options for a Bojangles Franchise
Most borrowers combine several tools, and the right Bojangles franchise loan structure depends on whether the site is owned or leased and how many units are planned.
SBA 7(a) loans. The SBA 7(a) loan program is a flexible option for a Bojangles restaurant because a single loan can cover building and site improvements, equipment, the franchise fee and working capital. The SBA 7(a) program maximum is currently $5 million, though program rules can change. For a traditional freestanding restaurant, that ceiling and the size of the project make careful structuring important.
SBA 504 loans. When the borrower will own the land and building, an SBA 504 loan can finance the real estate and long-lived equipment with long-term fixed-rate debt, alongside a senior lender. The 504 structure is often considered for freestanding quick-service restaurants because construction is such a large share of the budget.
Conventional term loans. Experienced multi-unit operators frequently use conventional business loans, particularly when a development schedule will push total borrowing beyond what one SBA loan can carry or when the group’s financial strength supports conventional terms. Terms, collateral and covenants vary by lender, and every request is subject to underwriting.
Equipment financing. Fryers, biscuit production equipment, ovens, holding cabinets, walk-in coolers and freezers, ventilation hoods, drive-thru order systems and point-of-sale technology can be financed separately, which can preserve cash for construction. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. A new restaurant needs payroll for a trained crew before opening, opening inventory and a reserve for the ramp-up period, and a development schedule repeats that need with every unit. A line of credit can bridge pre-opening costs and seasonal swings. See our restaurant working capital options.
Seller financing on resales. When buying an existing restaurant from another franchisee, part of the price may be carried by the seller. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and may be limited by SBA program rules when an SBA loan is involved.
SBA Loans for Bojangles Franchisees
SBA lenders rely on the SBA Franchise Directory, which lists brands whose franchise agreements have been reviewed for eligibility. A brand generally needs to appear on the directory before a lender can make an SBA-guaranteed loan to one of its franchisees. A listing clears the franchise relationship for SBA review; it does not approve any borrower or any project.
Bojangles is listed on the SBA Franchise Directory. The listing covers Bojangles, Bojangles’ Famous Chicken ‘n Biscuits and Bojangles’ Express (identifier S0233), and it carries two notes, both about real estate.
Note 1: the lease addendum. When the real estate where the restaurant is located will secure the SBA loan, the franchisor’s Form of Addendum to Lease may not be signed. In plain English, the lease addendum is written for restaurants in leased premises. If the borrower or an affiliate owns the property and pledges it as collateral, that addendum should not be layered on top of the lender’s real estate collateral.
Note 2: purchase options. Bojangles may not enforce a purchase option on real estate that is owned by the franchisee or an affiliate and taken as collateral for the SBA loan. Some franchise documents give a franchisor the right to buy a franchisee’s property in certain situations. This note means that right cannot be used against real estate securing an SBA loan, which protects the lender’s collateral position.
For an owner who plans to buy the land and building, these notes matter. Your attorney and lender should confirm that the document package is signed in the form the directory requires, and that any related-party real estate structure is set up correctly before closing.
SBA application tips. Prepare a detailed construction budget that ties to Item 7, contractor bids, a site plan and a sources-and-uses table for each restaurant. If your development schedule includes several units, show lenders how each loan fits within program limits and how the organization will carry multiple ramp-ups at once. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Bojangles Deal
Underwriting a Bojangles franchise loan comes down to a handful of factors.
Personal credit and financial history. Lenders review credit reports, tax returns and personal financial statements for every significant owner, and typically require personal guarantees.
Net worth and liquidity. Bojangles’ own minimums are already well above what many restaurant concepts ask. Lenders will look at what remains after the equity injection for the first restaurant and whether the group can fund later units on the development schedule without stretching.
Industry and management experience. Multi-unit restaurant experience is the strongest credential. Lenders want to see who will run day-to-day operations, how many general managers are already in place and how the group recruits and trains crews for new markets.
Business plan and projections. A credible plan models breakfast, lunch and dinner sales, drive-thru share, labor scheduling around early-morning biscuit production, food cost, royalty and marketing contributions, occupancy and a realistic ramp period. For markets where Bojangles is new, lenders will look for evidence of local demand and for conservative first-year assumptions.
The FDD and franchise agreement. Lenders review the development agreement schedule, default and cross-default provisions, transfer and renewal terms, and any remodel obligations. The FDD’s Item 19 section shows whether the franchisor provides financial performance representations; read it alongside your own projections rather than in place of them. Our article on how lenders read a Franchise Disclosure Document explains which items matter most.
Site, lease or real estate. For a freestanding restaurant, lenders want the purchase contract or ground lease, zoning, traffic and access studies, the construction budget and the contractor’s qualifications. For leased sites they will review the lease term, renewal options and any landlord consent required for collateral.
Historical financials for existing restaurants. On a resale, expect to provide several years of profit and loss statements, sales reports and tax returns for the restaurant being purchased.
Building and Equipping a Bojangles Restaurant
A Bojangles kitchen is designed around fresh fried chicken and biscuits made throughout the day. The franchisor’s own materials note that its chicken biscuit takes 49 individual steps to make. That production intensity shows up in the equipment list: fryers, ovens, mixers and biscuit tables, holding equipment, refrigeration, beverage systems, ventilation and fire suppression, plus drive-thru and digital ordering technology.
Construction management. For traditional restaurants, the building and site work typically dominate the budget. Lenders financing construction usually require a fixed-price or guaranteed maximum price contract, a construction schedule, draw procedures and a contingency. Our article on franchise real estate financing explains how owned and leased sites are underwritten.
Equipment as collateral. Because the franchisee owns the kitchen and front-of-house equipment, these assets add collateral value. Financing them separately can also align the repayment term with each asset’s useful life.
Multi-Unit Growth and Development Agreements
For most Bojangles franchisees, growth is built into the deal from the start. A development agreement sets the number of restaurants and the schedule for opening them, and missing the schedule can have consequences under the agreement.
Financing the schedule. Lenders typically finance each restaurant separately as its site is approved, then look at the combined performance of open units when underwriting the next one. Owners often pair real estate financing for owned sites with equipment financing and a working capital line that serves the whole group.
Development incentives. The franchising website has described an equipment reimbursement program for development agreements of three or more restaurants, with rebates of $300,000 on qualifying openings. Incentives like this can affect the sources-and-uses for each unit, so get the current terms in writing and share them with your lender.
Planning capital across units. Opening several restaurants close together means carrying multiple pre-opening periods and ramp-ups at once. Our article on multi-unit franchise financing walks through how lenders size debt across a growing portfolio.
Real-World Scenarios
A restaurant group adding a new brand. An operator that runs several units of another restaurant concept signs a development agreement for a Bojangles market. The lender underwrites the group’s existing cash flow to support the first freestanding restaurant, using an SBA 504 loan for the land and building and separate equipment financing for the kitchen.
A first unit in a new market. A well-capitalized franchisee with quick-service experience opens the first Bojangles in a region where the brand is new. The lender asks for conservative ramp-up projections, a larger working capital reserve and evidence of local site demand before approving an SBA 7(a) loan.
An Express location on a leased site. An existing franchisee adds an Express restaurant where a freestanding building does not fit. Financing covers the leasehold improvements, equipment and opening costs, with no real estate in the collateral package.
Buying an existing restaurant from a retiring franchisee. An operator buys an established Bojangles with years of sales history. The lender underwrites actual results, the seller carries a small subordinated note, and the buyer budgets for any image update Bojangles requires at transfer.
Common Mistakes to Avoid
- Treating the franchisor’s liquidity and net worth minimums as optional or assuming a loan can replace them
- Budgeting for one restaurant when the development agreement commits you to several
- Assuming SBA program limits will cover every unit on a development schedule
- Signing the lease addendum or related-party real estate documents in a form that conflicts with the SBA Franchise Directory notes
- Underestimating ramp-up time in markets where Bojangles is new
- Leaving out royalty and marketing contributions when projecting cash flow
- Relying on an incentive program without confirming it is currently offered
For more pitfalls that apply across the industry, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Bojangles Franchise
Step 1: Confirm you meet Bojangles’ requirements. Document your net worth, liquid capital and restaurant experience against the franchisor’s published minimums and its expectation of opening at least three locations.
Step 2: Start the franchise process. Interview with the franchise development team, review the FDD, and submit the application and financial qualification package.
Step 3: Review the FDD and development agreement with advisors. Study Items 5, 6, 7, 10, 17 and 19, the development schedule and the franchise agreement with a franchise attorney and accountant.
Step 4: Talk with a financing specialist early. Before you commit to a development schedule, learn how lenders will finance each unit, whether SBA or conventional financing fits, and how much capital the group must keep in reserve.
Step 5: Build a site-level budget and projections. For each restaurant, tie the construction budget, equipment package and opening costs to Item 7, and build cash flow projections that include all ongoing fees.
Step 6: Apply for financing and coordinate approvals. Submit personal and business financial statements, tax returns, the business plan, site documents and the franchise documents, and align lender timelines with Bojangles’ site approval and construction schedule.
Step 7: Close, build and open. Manage construction draws, complete the 13-week training program, fund working capital and plan the next site on your schedule.
Bojangles Franchise Loan FAQs
How much does it cost to open a Bojangles franchise?
According to Bojangles’ franchising website, which refers to its April 20, 2026 FDD, the estimated initial investment is $2,851,880 to $3,951,200 for a traditional freestanding restaurant and $780,780 to $1,858,700 for an Express location.
What is the Bojangles franchise fee?
The franchising website lists a $35,000 franchise fee per location. Check Item 5 of the current FDD for payment timing, development agreement terms and any incentive that may apply.
What royalty does Bojangles charge?
Bojangles charges a continuing royalty and marketing contributions based on gross sales. The current rates are disclosed in Item 6 of the FDD, which you should review before building projections.
How much liquid capital and net worth do I need?
The franchising website lists a minimum net worth of $2,500,000 and minimum liquid capital of $1,000,000.
Is Bojangles approved for SBA loans?
Yes. Bojangles is listed on the SBA Franchise Directory, with notes covering the lease addendum and purchase options when real estate secures the loan. A listing does not guarantee any borrower’s approval.
Can I open just one Bojangles restaurant?
Bojangles says it looks for operators with the ability to open at least three locations in their market. Ask the franchise development team whether any single-unit opportunities exist in your area, such as existing restaurants for sale.
Can I buy an existing Bojangles restaurant?
Yes, with Bojangles’ approval. Existing restaurants are sold by franchisees, and lenders can underwrite their actual operating history.
Does Bojangles offer financing?
Review Item 10 of the current FDD for any financing the franchisor offers. Most franchisees arrange their own loans, and the franchising website has described development incentives such as equipment reimbursements for qualifying multi-unit agreements.
Can a first-time franchisee get a Bojangles franchise loan?
It is possible, but the brand favors experienced restaurant operators, and lenders weigh management experience heavily. A first-time franchisee with strong restaurant management experience and capital that meets Bojangles’ minimums will be in a better position.
What documents do lenders need?
Expect to provide personal financial statements, tax returns, a resume showing restaurant experience, the FDD and franchise or development agreement, a business plan with projections, and site documents such as a purchase contract or lease and a construction budget.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see what financial performance representations it includes. When buying an existing restaurant, rely on the restaurant’s actual financial statements.
Final Thoughts
A Bojangles franchise loan is usually one piece of a capital-intensive, multi-unit plan. Buyers who meet the franchisor’s capital requirements, understand how the SBA Franchise Directory notes affect owned real estate, and plan financing for the whole development schedule rather than one restaurant give themselves the best chance at a smooth closing.
US Professional Funding helps franchise owners and buyers finance new units, acquisitions, equipment, working capital and refinancing for established brands. Learn more about our franchise financing and restaurant financing solutions.
