What is management required to evaluate when preparing Bojangles' consolidated financial statements?

According to Bojangles's 2025 Franchise Disclosure Document, when preparing consolidated financial statements, the management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date the consolidated financial statements are available to be issued.

This evaluation is a standard accounting practice, ensuring that the financial statements provide a realistic view of the company's financial health. It means Bojangles' management must assess all known factors that could impact the company's ability to operate for the next year. This includes assessing current financial obligations, revenue forecasts, and any potential risks that could affect the business.

For a prospective franchisee, this requirement offers some reassurance. It suggests that Bojangles' financial statements are prepared with due diligence and in accordance with generally accepted accounting principles. This doesn't guarantee the company's future success, but it does indicate that management is actively monitoring and assessing the company's financial viability. Franchisees should still conduct their own thorough due diligence, but this requirement provides a baseline level of confidence in the financial reporting.

It is important to note that the auditor also has responsibilities in evaluating the financial statements. The auditor must conclude whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern. This provides an additional layer of scrutiny and oversight, further enhancing the reliability of the financial statements.