Detailed Information on Bojangles’ Initial Franchise Fee, Royalty Fee + 17 Other Fees (Items 5 and 6, 2022 FDD)

1.  Development Fee:  $10,000 for each Restaurant that Bojangles authorizes you to develop

• You must pay a development fee of $10,000 for each Restaurant that Bojangles authorizes you to develop when you sign the Development Agreement regardless of whether you actually develop Restaurants after that time.

• You must sign one Development Agreement per state. When you sign the Development Agreement, you also will sign a Franchise Agreement for the first Restaurant that you plan to develop and you will pay the applicable franchise fee for that Restaurant.

• If you sign a Development Agreement in conjunction with Bojangles’ Refranchising Program, you must pay a development fee of $10,000 for each new Restaurant you commit to opening under the Development Agreement in an existing market and a development fee of $35,000 for each new Restaurant you commit to opening under the Development Agreement in a New Market under Bojangles’ New Market Reinvestment Program Addendum to your Development Agreement.

2.  Franchise Fee:  $20,000 to $35,000

• You must pay Bojangles a franchise fee of $35,000 when you sign the Franchise Agreement for each traditional Restaurant you develop according to the development schedule in your Development Agreement.

• The franchise fee for each Bojangles Express Restaurant is $20,000 and is payable upon execution of the Bojangles Express Franchise Agreement.

• Bojangles will credit the $10,000 (or $35,000, if applicable for the first Restaurant to be developed as a part of Bojangles’ Refranchising Program in New Markets) development fee that you paid for the first Restaurant that you develop under the Development Agreement against the franchise fee paid for that Restaurant when you sign the Franchise Agreement.

• Bojangles will credit the $10,000 (or $35,000, if applicable for each Restaurant to be developed as a part of Bojangles’ Refranchising Program in New Markets) development fee that you paid for each additional Restaurant that you develop under the Development Agreement against the franchise fee paid for that Restaurant if you sign the Franchise Agreement and pay the applicable franchise fee within 30 days after site approval.

• In order to encourage the development of franchised Bojangles Restaurants by persons who are part of certain historically underrepresented groups, Bojangles has implemented a Development Incentive Program for Minorities, Women, and Veterans.

• Under the Program, Bojangles will: (1) reduce the franchise fee by 50% for the first two Qualifying Restaurants that you develop under the Development Agreement; and (2) reduce the royalty fee you pay for each Qualifying Restaurant you develop under the Development Agreement according to the following schedule:

• Year One:  3% of Gross Sales of the Restaurant subtracted from the Standard Royalty fee
• Year Two:  2% of Gross Sales of the Restaurant subtracted from the Standard Royalty fee
• Year Three:  1% of Gross Sales of the Restaurant subtracted from the Standard Royalty fee
• Year Four and Onward:  Standard Royalty fee rate set forth in the Franchise Agreement

3.  Purchase Price and Initial Fees Due Under the Refranchising Program:  see below

• If you sign an Asset Purchase Agreement to acquire company-operated Bojangles Restaurants under Bojangles’ Refranchising Program, you will pay the purchase price for the acquired assets at the time and in the manner specified in the Asset Purchase Agreement.

• In addition to the purchase price, Bojangles may charge surplus rent for any leases it will sublease to you as part of the Refranchising Program transaction.

• You will sign a Franchise Agreement and pay, in addition to the purchase price, the franchise fee noted above for each acquired Restaurant and for the first Restaurant to be opened under each Development Agreement you will sign at the closing of the transaction.

• You also must sign a Development Agreement for each DMA in which you will develop new Restaurants and pay, in addition to the purchase price, the development fees noted above at the closing for each new Restaurant you commit to opening under each Development Agreement.

• In addition to the purchase price, franchise fees, and development fees, you will also pay Bojangles for (i) all closed and opened cases of usable food inventory and supplies that are in-stock at each purchased Restaurant, (ii) cash on-hand held by Bojangles at each purchased Restaurant, in each case as determined as of the close of business on the day before the closing date of the Refranchising Program transaction, and (iii) any other additional costs or amounts negotiated with you as part of the Asset Purchase Agreement.

4.  Standard Royalty:  4% of total monthly Gross Sales

• Due Date:  15th day of each month.

• The royalty is calculated on Gross Sales made during the preceding month.

5.  Royalty for Restaurants Acquired Under the Refranchising Program:  5% of Gross Sales

• Due Date:  15th day of each month.

• The royalty is calculated on Gross Sales made during the preceding month.

6.  Marketing Development Fund:  1% of total monthly Gross Sales

• Due Date:  15th day of each month.

• The contribution is calculated on Gross Sales made during the preceding month.

7.  Local Marketing Expenditure:  3% of total monthly Gross Sales less amounts spent on cooperative advertising

• Due Date:  Calculated monthly.

• This expenditure must be demonstrated to Bojangles on a quarterly basis. If you fail to make or report the required advertising expenditures, Bojangles may require you to make payment directly to it for spending by it at its discretion.

8.  Cooperative Advertising:  typically 2% of Gross Sales

• Due Date:  Payable upon invoice.

• The amount is determined by the agreement of cooperative members with Bojangles and is credited against your local marketing expenditure.

9.  Audit:  deficiencies in amounts owed, plus interest

• Due Date:  Payable upon invoice.

• You also must pay all costs and expenses connected with the audit if an audit reveals an understatement of 5% or more.

10.  Interest:  1.5% per month compounded monthly or the maximum rate permitted by law, whichever is less

• Due Date:  Payable upon demand.

• Payable on any overdue amount or underpayment from the date such amount was due until paid.

11.  Transfer:  $5,000 per Restaurant

• Due Date:  Payable prior to consummation of transfer.

• Bojangles has the right to approve all transfers.

• Payable only if a transfer, alone or together with other previous, simultaneous, or proposed transfers, would have the effect of transferring a controlling interest in you or in any Development or Franchise Agreement.

12.  Renewal:  50% of franchise fee in effect at time of renewal

• Due Date:  Payable upon signing of Renewal Franchise Agreement prior to end of then-current term.

• The Bojangles Express Franchise Agreement does not provide for renewal rights.

13.  New Product and Supplier Testing:   Bojangles’ reasonable expenses (estimated at $4,500 to $12,000)

• Due Date:  Payable upon demand.

• If you request Bojangles’ authorization to sell new products or use an alternate supplier of products or services, you must pay Bojangles’ reasonable expenses to evaluate the supplier.

14.  Training – Optional Programs:  then-current training fee

• Due Date:  Payable upon demand.

• Payable for optional training programs and seminars Bojangles may offer from time to time.

15.  On-site Support:  $2,500 per person per week

• Due Date:  Payable upon demand.

• If you request additional on-site personnel support for a Restaurant opening or at any time thereafter, Bojangles will charge you $2,500 per person per week.

16.  Costs and Attorneys’ Fees:  Bojangles’ costs and expenses

• Due Date:  As incurred.

• If Bojangles prevails in litigation regarding enforcement of the terms of any agreement, you must pay Bojangles’ attorneys’ fees and costs.

17.  Reimbursement of Insurance Costs:  cost of procuring insurance and Bojangles’ expenses

• Due Date:  Upon demand.

• Payable if you fail to procure or maintain required insurance and Bojangles procures such insurance.

18.  Indemnification:  Bojangles’ losses and expenses

• Due Date:  As incurred.

• You must indemnify and hold Bojangles and its officers, directors, shareholders, and employees harmless against any and all claims arising directly or indirectly from, as a result of, or in connection with, the operation of your franchise business, as well as the costs, including attorneys’ fees, of defending against them.

19.  Taxes:  Bojangles’ expenses

• Due Date:  Within 30 days of receipt of invoice.

• You must reimburse Bojangles for any sales tax, gross receipts tax, or similar tax imposed on Bojangles with respect to any payments you make to it, unless the tax is credited against income tax otherwise payable by Bojangles.