What was the noncurrent portion of Bojangles' deferred revenue balance as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
| Deferred revenue, balance as of December 25, 2022 | $ 9,917 |
|---|---|
| Revenue recognized that was included in the deferred revenue balance | (1,225) |
| as of December 25, 2022 | |
| Revenue recognized that was not included in the deferred revenue balance | |
| as of December 25, 2022 | (321) |
| Increase due to cash received | 1,535 |
| Deferred revenue, balance as of December 31, 2023 | 9,906 |
| Less: Current portion of deferred revenue | (533) |
| Noncurrent portion of deferred revenue | $ 9,373 |
| Deferred revenue, balance as of December 31, 2023 | $ 9,906 |
| Revenue recognized that was included in the deferred revenue balance | (901) |
| as of December 31, 2023 | |
| Revenue recognized that was not included in the deferred revenue balance | |
| as of December 31, 2023 | (53) |
| Franchise fee refunds | (169) |
| Increase due to cash received | 2,000 |
| Deferred revenue, balance as of December 29, 2024 | 10,783 |
| Less: Current portion of deferred revenue | (575) |
| Noncurrent portion of deferred revenue | $ 10,208 |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the noncurrent portion of deferred revenue as of December 31, 2023, was $9,373,000. This deferred revenue primarily consists of initial franchise license and development fees that Bojangles has received but for which they have not yet fulfilled their obligations under the franchise agreements. It also includes revenue related to an agreement with a vendor for beverage product purchases by Bojangles and its franchisees over an extended period.
The deferred revenue balance represents payments Bojangles has received for services or products that will be delivered in the future. The noncurrent portion specifically refers to the amount of revenue that Bojangles expects to recognize beyond the next 12 months from the balance sheet date. This distinction is important for understanding Bojangles' long-term financial obligations and revenue recognition schedule.
For a prospective Bojangles franchisee, understanding deferred revenue is crucial because it reflects the franchisor's obligations to provide support and services in the future. A significant deferred revenue balance suggests that Bojangles has a strong pipeline of future revenue streams and ongoing responsibilities to its franchisees. Monitoring changes in deferred revenue can provide insights into the company's growth and its ability to meet its commitments to franchisees over time.