What was the income tax (expense) benefit for Bojangles for the year ended December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended | ||||||
|---|---|---|---|---|---|---|
| December 29, 2024 | December 31, 2023 | December 25, 2022 | ||||
| Current | ||||||
| U.S. federal | $ | (7,494) | $ | (3,978) | $ | 527 |
| State and local | (1,625) | (1,275) | 326 | |||
| Total current income tax (expense) benefit | (9,119) | (5,253) | 853 | |||
| Deferred | ||||||
| U.S. federal | 1,794 | (299) | 1,945 | |||
| State and local | 185 | (689) | 289 | |||
| Total deferred income tax benefit (expense) | 1,979 | (988) | 2,234 | |||
| Income tax (expense) benefit | $ | (7,140) | $ | (6,241) | $ | 3,087 |
| Years Ended | |||||
|---|---|---|---|---|---|
| December 29, 2024 | December 31, 2023 | December 25, 2022 | |||
| Computed "expected" tax benefit | $ | 2,278 | $ | 5,039 | $ 9,985 |
| Reduction (increase) in income taxes resulting from | |||||
| Amortization of goodwill not deductible for | |||||
| income tax purposes | (8,439) | (8,426) | (8,426) | ||
| State and local income taxes, net of federal | |||||
| income tax expense/benefit | (1,138) | (1,552) | 615 | ||
| Work opportunity and welfare to work tax | |||||
| credits, net of federal income tax expense | 727 | 718 | 612 | ||
| Disallowance of share based compensation | |||||
| arrangements | (187) | (139) | (264) | ||
| Meals and entertainment | (49) | (45) | (75) | ||
| Other, net | (332) | (1,836) | 640 | ||
| Income tax (expense) benefit | $ | (7,140) | $ | (6,241) | $ 3,087 |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the income tax (expense) benefit for the year ended December 31, 2023, was an expense of $6,241. This figure is derived from a combination of current and deferred income taxes. The current portion includes U.S. federal expenses of $3,978 and state and local expenses of $1,275, totaling $5,253. The deferred portion includes U.S. federal benefits of $299 and state and local expenses of $689, resulting in a total deferred expense of $988.
Breaking down the income tax (expense) benefit further, the computed "expected" tax benefit was $5,039. However, several factors caused a reduction in income taxes, including amortization of goodwill not deductible for income tax purposes ($8,426) and state and local income taxes, net of federal income tax expense/benefit ($1,552). Factors that increased the income tax benefit included work opportunity and welfare to work tax credits, net of federal income tax expense ($718).
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and tax strategies of Bojangles. The interplay between expected tax benefits and various adjustments highlights the complexities of corporate taxation and the importance of professional financial advice. While this data provides a historical snapshot, future tax liabilities and benefits may vary based on changes in tax laws and the company's financial performance.