Bojangles franchise startup costs run $1.2M–$2.2M for a Southern fried chicken and biscuits quick-service restaurant. The brand operates approximately 800 units concentrated in the Southeast US, with a strong breakfast daypart built around its made-from-scratch biscuit platform.
Bojangles franchise costs at a glance
Total investment
$1.2M–$2.2M
Franchise fee
$25,000
Royalty
4.5%
Ad / marketing fee
1%
Liquid capital required
$500,000
Net worth required
$1.5M
Source: Bojangles Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.
Per the current FDD, total estimated initial investment for a Bojangles franchise runs $1,200,000–$2,200,000. The biscuit-from-scratch format requires specialized kitchen equipment — commercial mixers, proofing equipment, and dedicated biscuit prep stations — in addition to standard QSR chicken frying infrastructure:
Franchise fee: $25,000
Real estate and leasehold improvements / construction: $700,000–$1,400,000
Drive-through and exterior signage: $40,000–$100,000
Technology (POS, digital menu boards, kitchen display): $35,000–$70,000
Furniture, fixtures, and interior build-out: $70,000–$150,000
Opening inventory: $15,000–$30,000
Training and travel: $20,000–$45,000
Working capital: $40,000–$80,000
Miscellaneous pre-opening and permits: $25,000–$60,000
2 Ongoing fees and royalty structure
Bojangles franchisees pay a 4.5% royalty on net sales plus a 1% advertising fund contribution — for a combined 5.5% of net sales. This is among the lower combined fee structures in the QSR chicken segment. The low advertising fund reflects Bojangles' regional brand strategy: the chain concentrates marketing investment in core Southeast markets where brand recognition is already high, rather than spreading national advertising across markets where the brand lacks density. Franchisees may also participate in regional advertising co-ops.
3 Net worth and liquid capital requirements
Bojangles requires prospective franchisees to demonstrate net worth of $1,500,000 or more and liquid capital of $500,000 or more. The net worth requirement is higher than the franchise fee and investment range suggest — Bojangles evaluates franchisees on multi-unit capacity, not single-unit capability. The brand prefers candidates with existing restaurant operations experience, Southeast US market knowledge, and the financial depth to develop multiple locations over time. Single-unit first-time franchisees are evaluated on a case-by-case basis.
4 Financing Bojangles
Bojangles is listed in the SBA Franchise Directory effective October 9, 2026, under SBA franchise identifier code S0233 (code start date October 1, 2017).
SBA's directory entry for Bojangles adds these notes for lenders:
When the real estate where the franchise is located will secure the SBA-guaranteed loan, the Form of Addendum to Lease may not be executed.
The franchisor may not enforce a Purchase Option on real estate owned by the franchisee or an affiliate of the franchisee and taken as collateral for the SBA loan.
The loan programs typically used for a Bojangles franchise are covered in Financing options below.
5 Financing options
Bojangles is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths:
SBA 7(a) loan: Covers franchise fee, leasehold improvements, specialized biscuit equipment, standard kitchen equipment, and working capital.
SBA 504 loan: For franchisees pursuing owned real estate, the 504 program's fixed-asset focus aligns with the construction-heavy Bojangles build-out.
Equipment financing: Commercial mixers, proofing equipment, fryers, and kitchen display systems can be financed separately from the primary restaurant loan.
Working capital line of credit: Supports pre-opening staffing, ingredient inventory, and the ramp-up period while guest traffic builds in a new market.
6 What lenders look for in a Bojangles franchise application
Bojangles is on the SBA Franchise Directory, enabling expedited eligibility review for SBA-approved lenders. At $1.2M–$2.2M, the biscuit-from-scratch format creates specialized equipment requirements that distinguish this from standard chicken QSR builds. Key factors lenders evaluate:
Debt service coverage ratio (DSCR): SBA guidelines require 1.15× minimum. Lenders typically require 1.25×–1.35× on Bojangles builds due to the investment size and construction ramp period. The dual daypart model (breakfast biscuits + chicken lunch/dinner) should be documented separately in the pro forma to show diversified revenue streams supporting debt service.
Equity injection: SBA minimum is 10% of total project cost. Lenders typically require 20–25% on full-service QSR builds — on a $1.7M midpoint, $340K–$425K in documented borrower equity. Borrowed equity does not qualify under SBA rules.
Net worth and liquid capital: Bojangles' thresholds ($1.5M+ net worth, $500K+ liquid) reflect the capital intensity of the full kitchen build-out including specialized biscuit production equipment. Lenders independently verify these on a current personal financial statement.
Southeast market knowledge: Bojangles is heavily concentrated in the Southeast, and Jordan Company's expansion strategy is selective. Lenders will want to see that the applicant has either existing Southeast market presence or documented demand analysis for new-market entry.
Specialized biscuit equipment: Commercial mixers, proofing equipment, and dedicated biscuit prep stations are a higher-cost requirement unique to this concept. Lenders familiar with QSR chicken franchises may need to be briefed on this component — the equipment list should be itemized clearly in the loan application.
The Fed Small Business Credit Survey finds bank loans and SBA-guaranteed financing remain the primary credit sources QSR small employer firms use to fund startup and build-out costs at this investment tier. — Federal Reserve — Small Business Credit Survey
Frequently asked questions
How much does a Bojangles franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $1,200,000–$2,200,000. The biscuit-from-scratch format adds specialized kitchen equipment costs beyond standard QSR chicken concepts.
Where does Bojangles operate?
Bojangles is concentrated in the Southeast US — primarily the Carolinas, Georgia, Tennessee, and Virginia. As of 2026, the brand operates approximately 800 locations with selective expansion into adjacent markets.
What is the Bojangles royalty rate?
Bojangles charges a 4.5% royalty on net sales plus a 1% advertising fund contribution, for a combined 5.5% — among the lower combined fee structures in QSR chicken franchising.
Who owns Bojangles?
Bojangles was taken private in 2019 by The Jordan Company, a private equity firm.
Can I finance a Bojangles franchise with an SBA loan?
Yes. Bojangles is on the SBA Franchise Directory. SBA 7(a) covers franchise fee, construction, equipment, and working capital. SBA 504 is also an option for franchisees pursuing owned real estate.
What DSCR do lenders require for a Bojangles franchise SBA loan?
SBA guidelines set a minimum DSCR of 1.15× — the business must generate $1.15 in cash flow for every $1.00 in annual debt service. On Bojangles builds in the $1.2M–$2.2M range, lenders typically require 1.25×–1.35× to account for construction ramp time and new-market traffic build. The brand's dual daypart structure (breakfast biscuits + chicken lunch/dinner) can be documented separately in pro forma to demonstrate revenue diversification. Source: SBA SOP 50 10 8 (sba.gov).
How much equity injection do I need for a Bojangles SBA loan?
SBA requires a minimum 10% equity injection of total project cost. On Bojangles builds, lenders typically require 20–25% borrower equity — on a $1.7M midpoint, that's $340K–$425K in documented borrower funds. Equity can come from personal savings or ROBS (retirement account rollover); borrowed equity does not qualify under SBA rules. Source: SBA SOP 50 10 8, Subpart B, Chapter 4.
What net worth and liquid capital do I need to qualify for a Bojangles franchise?
Bojangles requires prospective franchisees to demonstrate net worth of $1,500,000 or more and liquid capital of $500,000 or more. The threshold reflects the capital intensity of the full kitchen build-out, including specialized biscuit production equipment, and Bojangles' evaluation of franchisees on multi-unit capacity rather than single-unit qualification.
Summary:
Bojangles franchise startup costs run $1.2M–$2.2M for a Southern fried chicken and biscuits quick-service restaurant. The brand operates approximately 800 units concentrated in the Southeast US, with a strong breakfast daypart built around its made-from-scratch biscuit platform.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
