What was the amount due to related parties from Bojangles as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
e judgment made by a reasonable user based on the financial statements.
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- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
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Charlotte, North Carolina
April 15, 2025
Bojangles Opco, LLC Balance Sheets December 29, 2024 and December 31, 2023
| (dollars in thousands) | December 29, 2024 | December 31, 2023 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 16,381 | $ 20,361 |
| Accounts receivables, net of allowance of | ||
| $115 and $93, respectively | 6,614 | 4,676 |
| Vendor receivables | 2,732 | 2,747 |
| Inventories, net | 3,549 | 3,981 |
| Prepaid and other current assets | 418 | 408 |
| Total current assets | 29,694 | 32,173 |
| Property and equipment, net | 84,985 | 83,611 |
| Goodwill, net | 142,758 | 175,663 |
| Brand | 340,500 | 340,500 |
| Franchise rights, net | 36,928 | 38,461 |
| Right of use | 210,703 | 215,821 |
| Other noncurrent assets | 892 | 811 |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the amount due to related parties as of December 31, 2023, was $7,562,000. This figure represents the financial obligations Bojangles had to entities or individuals with a close relationship to the company. Understanding these related-party transactions is crucial for prospective franchisees as it sheds light on the financial structure and potential dependencies within the Bojangles organization.
Specifically, the amount due to related parties is listed as a current liability on Bojangles' balance sheet. This means that Bojangles was expected to settle these obligations within one year. The balance sheet also provides a breakdown of amounts due to BRI (Bojangles Restaurants, Inc.) for items such as payroll, insurance, marketing, and management fees.
For a potential franchisee, this information is relevant for assessing the overall financial health and stability of Bojangles. It is important to understand the nature of these related-party transactions and how they might impact the franchisor's financial performance and, consequently, the franchisee's business. Further investigation into these relationships and their terms would be a prudent step in the due diligence process.
It is also worth noting that the balance sheet includes a comparison to the previous year, December 29, 2024, where the amount due to related parties was $1,442,000. The significant decrease from 2023 to 2024 could indicate changes in the company's financial management or relationships with related entities, warranting further inquiry to understand the reasons behind this shift.