What was the financing cash flow for finance leases, net, for Bojangles as of December 29, 2024?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
osts (c) | $ | 672 | $ | 613 | $ | 541 | | Rental income (d) | $ | (9,609) | $ | (8,939) | $ | (9,955) |
- (a) Amortization of finance lease assets is included in depreciation and amortization in the accompanying consolidated statements of operations.
- (b) Interest recognized on finance leases is included in interest expense in the accompanying consolidated statements of operations.
- (c) Operating and var
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the financing cash flows for finance leases, net, as of December 29, 2024, was $1,392. This figure reflects the net cash flow related to Bojangles's finance lease activities for that year. Finance leases typically involve long-term agreements where Bojangles essentially owns the asset over the lease term. The cash flow represents the net effect of these lease transactions on the company's financing activities.
For a prospective franchisee, understanding these figures provides insight into how Bojangles manages its long-term assets and liabilities. Finance leases can be a significant part of a company's capital structure, and the cash flows associated with them can impact the overall financial health of the company. This information helps potential franchisees assess the financial strategies and stability of Bojangles.
It's important to note that financing cash flows for finance leases are net of credits received from the return of automobile lease assets. This means that the reported figure takes into account any reductions in lease obligations due to the return of leased assets, which can influence the overall cash flow. Reviewing these cash flows over multiple years, as presented in the FDD, can give a more comprehensive view of Bojangles's leasing practices and their impact on the company's financial performance.