What was the accrued expense for sales and property taxes for Bojangles in the earlier year presented in the table?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2023 and December 25, 2022, respectively, and is included in depreciation and amortization expense in the accompanying financial statements.
Future amortization expense for fiscal years subsequent to December 29, 2024 is as follows:
| 2025 | $ 34,605 |
|---|---|
| 2026 | 34,605 |
| 2027 | 34,605 |
| 2028 | 34,605 |
| 2029 | 3,349 |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, a table provides a comparison of various expenses. The table shows accrued expenses for sales and property taxes. The earlier year presented in the table shows that the accrued expense for sales and property taxes was $4,335.
This figure represents the amount of sales and property taxes that Bojangles had incurred but not yet paid during that earlier year. Accrued expenses are a common accounting practice, reflecting obligations that exist but haven't been formally invoiced or paid.
For a prospective franchisee, understanding accrued expenses is crucial for assessing the financial health and obligations of the franchise. It provides a more accurate picture of the true costs associated with running the business, as it includes expenses incurred but not immediately visible in cash outflows.