What was the amount of accumulated amortization for Bojangles' right-of-use assets as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
xpenses**
Accrued expenses are as follows:
| Sales and property taxes | $ | 8,739 | $ | 4,335 | |
|---|---|---|---|---|---|
| Payroll and related | 1,716 | 2,223 | |||
| Utilities | 1,209 | 1,195 | |||
| Bank fees | 958 | 947 | |||
| Occupancy | 326 | 283 | |||
| Other | 881 |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, right-of-use assets were recorded net of accumulated amortization. As of December 31, 2023, the accumulated amortization was $133,983. As of December 29, 2024, the accumulated amortization was $167,608.
For a Bojangles franchisee, right-of-use assets typically represent the value of leased properties or equipment used in the operation of the franchise. These assets are amortized over their useful life, reflecting the gradual decline in their value. The accumulated amortization represents the total amount of the asset's value that has been expensed to date.
The FDD also mentions finance lease assets, which are included in property and equipment, net. These assets were recorded net of accumulated amortization of $2,086 as of December 31, 2023, and $2,914 as of December 29, 2024. Understanding these figures helps a franchisee assess the financial obligations and asset values associated with leasing agreements.
It is important to note that these figures are in thousands of dollars. Therefore, the actual accumulated amortization for right-of-use assets as of December 31, 2023, was $133,983,000, and for finance lease assets, it was $2,086,000.