What was the depreciation and amortization expense related to property and equipment for Bojangles for the year ended December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
the nonqualified deferred compensation plan are comprised of investments held in a rabbi trust and intended to fund a portion of the Company's current and future deferred compensation obligations. These investments consist of money market funds and mutual funds and the fair value measurements are derived using quoted prices in active markets for the specific funds which are based on Level 1 inputs of the fair value hierarchy.
3. Inventories, Net
Inventories, net is as follows:
| Food, net | $ 2,916 | $ |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the depreciation and amortization expense related to property and equipment was $21,700 for the year ended December 31, 2023. This figure reflects the expense recognized by Bojangles for the wear and tear and usage of its physical assets, such as buildings, equipment, and furniture, over that specific year. These expenses are important for understanding the company's financial performance and asset management. The amounts are in thousands of dollars.
For a prospective Bojangles franchisee, understanding depreciation and amortization is crucial because it impacts the overall profitability of the business. While franchisees may not directly deal with these expenses at the corporate level, they reflect the cost of maintaining and utilizing assets, which ultimately affects the financial health of the entire Bojangles system. Efficient asset management and lower depreciation expenses can contribute to a more stable and profitable franchise network.
It's also worth noting that Bojangles uses the straight-line method for calculating depreciation, spreading the cost evenly over the asset's useful life. This method provides a consistent and predictable expense each year, making it easier to forecast financial performance. The FDD also mentions that no property and equipment impairment charges were recorded during the year ended December 31, 2023, indicating that the value of the assets was not negatively impacted during that period.