How does Bojangles account for costs associated with opening Company-operated stores?

According to Bojangles' 2025 Franchise Disclosure Document, the company expenses all costs associated with opening company-operated stores during the period they are incurred. These costs, whether direct or indirect, encompass a range of expenditures.

Specifically, Bojangles includes items such as new employee training expenses, the costs of initial print materials, marketing expenses, payroll expenses, and rent incurred in connection with the opening of new restaurants. This accounting practice means that these expenses are recognized on the income statement in the period they occur rather than being capitalized and depreciated over a longer period.

For a prospective franchisee, this information is primarily relevant for understanding Bojangles' financial reporting practices for its company-operated stores. It does not directly impact the franchisee's own accounting for their franchised location, but it provides insight into how the franchisor manages and reports its own store-related expenses.