What is the maximum estimated useful life, in years, for furniture, fixtures, and equipment depreciation at Bojangles?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Provisions for depreciation are made using the straight-line method over an asset's estimated useful life: up to 40 years for buildings; up to 5 years for furniture, fixtures and equipment; up to 5 years for computer hardware and software; and in the case of leasehold improvements and finance lease assets, the lesser of the economic life of the asset or the lease term.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the company uses the straight-line method to depreciate assets over their estimated useful lives. For furniture, fixtures, and equipment, the maximum estimated useful life is up to 5 years. This means that Bojangles depreciates these assets over a period not exceeding five years.
For a prospective franchisee, understanding the depreciation timeline is important for financial planning and forecasting. The shorter the depreciation period, the faster the asset's value is recognized as an expense, which can impact taxable income and profitability in the early years of operation. This also affects the book value of the assets on the balance sheet.
In addition to furniture, fixtures, and equipment, Bojangles also depreciates buildings for up to 40 years and computer hardware and software for up to 5 years. Leasehold improvements and finance lease assets are depreciated over the lesser of the economic life of the asset or the lease term. These depreciation methods and timelines are standard accounting practices and can significantly influence a franchisee's financial statements.