Net Lease Industry

Cap Rate


Lowest cap rate over past 24 months

Cap Rate


12 mo avg with 5+ yr lease term

In the world of net leasing, Bojangles’ properties are generally considered long-term investments without landlord accountabilities to the usual infrastructure maintenance costs. Being publically traded, they are a unique fast food chain in high demand, seeing continuous sales growth that has now spanned 23 straight quarters. Bojangles’ has also been rated by Zagat in the top five chains, with restaurants averaging between 3500 and 3800 square feet per location. Each property is typically sitting on 4/5 to 1 1/2 acres with standard leasing terms of a fifteen year NNN, which means no landlord accountabilities. Each NNN will see two to four separate 5 year options, alongside rental bumps of seven to ten percent every 5 years. In some cases rental escalations can be found anywhere between 1 1/4 to 1 1/2 percent per annum.
Average Property & Lease
Average Sale Price $2,000,000 - $2,750,000
Average NOI $100,000 - $150,000
Building SF 3,500
Lease Term 15 Years
Escalations 10% Every 5 Years
Stock Symbol CAPITALCOM:US500





Expanding to over 662 restaurants since going public in May 2015, Bojangles’ has operations throughout 11 states, ranging from NC, SC, GA, VA, TN, AL, MD, FL, KT, WV, PA and Washington D.C. They have approximately 378 franchised properties in those states, while owning and operating 281 fast food restaurants directly. Their operations are heavily focused in North and South Carolina, as they continue growth expansion into new markets.

Net lease investors will find the standard 3800 sq. ft. restaurant sizing, which houses up to seventy customers at a time. Normally, buildings are situated on one acre of land. Each property features a modern look with drive through window, with generous parking for over forty vehicles at a time.

Regardless of city or rural location, property developing costs typically factor in the land, building structure, and restaurant assets requisite for operations. To this end, an average upfront cost of over two million dollars is required, allotting around a half million for the grounds, closer to 1.5 million for the restaurant structure including soft costs, and roughly $300,000 in approximate equipment costs.

The primary means of construction is ‘build-to-suit’, with the equipment lease being a minimal requirement for upfront investing. This is usually offered at the financed rate of $85k with 1 year cash-on-cash back of 129 percent.

Bojangles’ mission is all about unmatched customer service, with quality sourced and made foods and a Southern styled recipe theme. Being popular for their ‘Chicken ‘n Biscuits’ phrase, they have remained true to this famous slogan with their branding. Whenever you stop to eat, expect fresh biscuits baked from scratch every twenty minutes. They pride on non-frozen chicken legs served with delicious iced teas. They have always stayed true to their values ever since being founded in Charlotte, NC in 1977.

  • Growth expected to continue with one thousand units planned through 2020
  • Popular Chicken & Biscuit idea has continued to increase per unit volumes
  • No landlord ownership accountability due to NNN leasing
  • Creditworthiness is not applicable
  • Heavy competitors
Founded 1977
Headquarters Charlotte, North Carolina
Number of Locations 790
Revenue $0.547 B
Company Website
Key Principal Jose Armario