Bojangles

The Investment Costs score is 0, well below the typical 69-78 range for QSR franchises. Can you provide a detailed breakdown of all initial capital investment requirements, including equipment, build-out, inventory, and working capital?

With 2 litigation cases currently pending, what is the nature of these disputes and what is the expected timeline for resolution?

The ad fund rate of 1.0% is below the typical 2.0-4.0% range for QSR franchises. How is the marketing fund calculated, and what specific marketing initiatives does it support?

Your royalty rate of 4.0% is below the typical 5.0-6.0% range. Are there volume-based royalty adjustments or any circumstances where the rate could increase?

The initial term of 20 years exceeds the typical 10-15 year range. What is the rationale for this extended term, and what negotiation flexibility exists on initial term length?

Renewal requires payment of $17,500 (50% of then-current franchise fee). How frequently have franchise fees been increased historically, and what is the criteria for determining renewal fees?

The franchise agreement requires mandatory binding arbitration in Charlotte, North Carolina and waives jury trial and class action rights. Can you explain the rationale for this dispute resolution structure and provide examples of past arbitration outcomes?

The agreement requires unlimited personal guarantees covering all developer liabilities. What specific scenarios have triggered indemnification claims, and what is the typical financial exposure?

Territory is protected but not exclusive with no encroachment protection. How is encroachment defined, and what recourse do franchisees have if the company opens company-owned or franchised units near their territory?

Of the 3 cases in the past 3 years, what were the primary legal issues and outcomes? Were any related to territory disputes, royalty calculations, or renewal/termination disputes?

Gross sales data shows your system averaging $2.35 million, significantly above typical QSR ranges. What percentage of units are achieving this level, and what is the distribution across top and bottom performing locations?

The system grew from 788 units 3 years ago to 825 currently. How many of these units are company-owned versus franchised, and what is the strategic direction for this mix?

What support and training programs are provided, and how frequently are they updated? The Support & Training score is 100, so can you detail the specific resources available to franchisees?

Transfer fee is $5,000, but you noted renewal conditions require renovations and modernization with no cost cap. What is the typical cost of required renovations at renewal, and are these mandatory or optional?

Non-compete clause is 2 years within 10 miles. Does this apply only to competitive QSR concepts or to the specific Bojangles brand, and what restrictions apply if a franchisee is non-renewed versus terminates voluntarily?

Can you clarify the Risk Factors score of 47, which is below the typical 60-78 range? What specific risk factors were evaluated lowest, and how do these compare to your main competitors?

What are the top 3 reasons for unit closures in the past 3 years, and were any related to franchisee disputes or system changes?

Item 19 financial disclosure is provided. Does it include data on franchisee profitability (net income) or only gross sales? Can you provide the percentage of units that are profitable?