What was the accumulated amortization for Bojangles' franchise rights in the earlier period presented in the table?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Definite-lived intangible assets acquired in a business combination are recorded at fair value as of the acquisition date and primarily consist of goodwill and franchise rights. Goodwill represents the excess of the consideration paid for businesses acquired by the Company over the fair value of the identifiable net assets at the dates of acquisitions. The Company follows the accounting alternative documented in Accounting Standards Update ("ASU") 2014-02, Intangibles-Goodwill and Other (Topic 350) to account for goodwill. Goodwill is amortized on a straight-line basis over 10 years. Franchise rights represent the ability to generate a specific earnings stream associated exclusively with the Company's franchise agreements. Franchise rights are amortized on a straight-line basis over the weighted average life of 30 years based on the franchise agreements.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, definite-lived intangible assets, including franchise rights, are amortized over a weighted average life of 30 years. Franchise rights represent the ability to generate earnings from franchise agreements. The financial statements include information about the accumulated amortization of these franchise rights.
Based on the provided information, the accumulated amortization for franchise rights as of December 25, 2022, was $10,155 thousand. This figure represents the total amount of amortization expense recognized up to that date for Bojangles' franchise rights.
This information is relevant for prospective franchisees as it provides insight into how Bojangles accounts for its intangible assets and how the value of franchise rights is recognized over time. Understanding the amortization schedule can help franchisees assess the long-term value and potential return on investment associated with the franchise.