What was the accrued expense for capital equipment for Bojangles in the earlier year presented in the table?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
The following methods and assumptions were used to estimate the fair value of each class of financial instruments:
- Cash and cash equivalents, trade accounts and vendor receivables, other assets (nonderivatives), trade accounts payable, and accrued expenses (nonderivatives): The carrying amounts, at face value or cost plus accrued interest, approximate fair value because of the short maturity of these instruments.
- Property, plant and equipment: Fair value measurements are based on Level 3 inputs, including appraisals or sales prices of comparable assets and estimates of future cash flows. Property, plant and equipment is measured at fair value on a nonrecurring basis and is subject to fair value adjustments only in certain circumstances, for example, when there is evidence of impairment. Impairment charges are measured based on the amount by which the carrying amount of these assets exceeds their fair value. If the Company concludes that impairment exists, the carrying amount is reduced to fair value.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the financial statements include information about accrued expenses. The excerpt indicates that the carrying amounts of accrued expenses approximate fair value due to the short maturity of these instruments. However, the specific accrued expense for capital equipment is not broken out separately in the provided excerpts.
While the excerpt discusses fair value measurements and mentions that property, plant, and equipment are measured at fair value, it does not provide a specific figure for accrued expenses related to capital equipment for either December 29, 2024, or December 31, 2023. The excerpt also details how advertising costs are handled and how the company contributes to advertising funds managed by BRI, but this information is not directly related to accrued expenses for capital equipment.
To obtain the specific figure for accrued expenses related to capital equipment, a prospective Bojangles franchisee should review the complete financial statements within the 2025 FDD or request this information directly from the franchisor. Understanding these specific accrued expenses can help a franchisee better assess the initial and ongoing capital requirements for operating a Bojangles franchise.