Are the financial statements for Bojangles audited?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: FINANCIAL STATEMENTS]
ITEM 21 FINANCIAL STATEMENTS
Attached as Exhibit N are our audited financial statements as of December 29, 2024 and December 31, 2023 and for the years ended December 29, 2024, December 31, 2023 and December 25, 2022.
Also attached as Exhibit N are the audited consolidated financial statements of Walker Parent, Inc. and subsidiaries as of December 29, 2024 and December 31, 2023 and for the years ended December 29, 2024, December 31, 2023 and December 25, 2022. These financials are being included for disclosure purposes only. As reflected in Item 1, BRI, which is also a subsidiary of Walker Parent and Bojangles', Inc., is our Manager and will perform certain services on our behalf, including post-sale support and services to franchisees, under a Management Agreement with us. Neither BRI nor Walker Parent is a party to any Franchise Agreement or Development Agreement that we sign with franchisees, nor guarantees any of our obligations under any Franchise Agreement or Development Agreement that we sign with franchisees.
Report of Independent Auditors
To the Management and Board of Directors of Bojangles Opco, LLC
Opinion
We have audited the accompanying financial statements of Bojangles Opco, LLC (the "Company"), which comprise the balance sheets as of December 29, 2024 and December 31, 2023, and the related statements of income, of member's equity and of cash flows for each of the three years in the period ended December 29, 2024, including the related notes (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 29, 2024 in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Franchisor shall have the right, in its reasonable discretion, to require that Franchisee submit audited statements for any fiscal year or any period or periods of a fiscal year of Franchisee during the term of this Agreement, and to require Franchisee to cause its independent certified public accountant to consult with Franchisor, at Franchisee's expense, concerning the financial statements provided by Franchisee.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the financial statements are indeed audited. Item 21 explicitly states that the audited financial statements as of December 29, 2024, and December 31, 2023, and for the years ended December 29, 2024, December 31, 2023, and December 25, 2022, are attached as Exhibit N.
Furthermore, the FDD includes a "Report of Independent Auditors" which gives their opinion on the financial statements of Bojangles Opco, LLC. The auditors state that they conducted their audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). They affirm that the financial statements present fairly the financial position of the Company as of December 29, 2024, and December 31, 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 29, 2024, in accordance with accounting principles generally accepted in the United States of America.
In addition to Bojangles's financial statements being audited, the franchisor also has the right to request that a franchisee submit audited statements for any fiscal year or periods within a fiscal year. The franchisee may also be required to have their independent certified public accountant consult with Bojangles about the franchisee's financial statements, at the franchisee's expense. This is a fairly standard practice in franchising, allowing the franchisor to maintain oversight and ensure financial integrity across the Bojangles system.