What was the noncurrent portion of deferred revenue for Bojangles as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
in any applicable cure period, the unpaid amounts outstanding could become immediately due and payable.
Principal Payments
Aggregate maturities on the 2024-1 Senior Notes for fiscal years subsequent to December 29, 2024 are as follows:
| 2025 | $ 5,750 | |---------------------|---------------| | 2026 | 5,750 | | 2027 | 5,750 | | 2028 | 5,750 | | 2029 | 552,000 | | Thereafter | - $ 575,000 |
(dollars in thousands, except par values and per unit values)
10. Other Noncurrent Liabilities
Other noncurrent liabilities are as follows:
| Deferred revenue | $ 10,613 | $ | 9,893 |
|---|---|---|---|
| Deferred compensation | 1,088 | 1,169 | |
| Long-term accrued expenses | 379 | 443 | |
| Other noncurrent liabilities | $ 12,080 | $ | 11,505 |
Deferred revenue includes initial franchise license and development fees that have been received, but for which the Company has not completed its obligations under the related franchise agreements. In addition, the Company has entered into an agreement with a vendor whereby the Company and its franchisees have agreed to purchase certain beverage products over an extended period of years. In exchange for this commitment, the Company received cash payments of $110 and $953 during the years ended December 26, 2021 and December 27, 2020, respectively. The Company recognized $115 of this amount as a reduction of general and administrative costs in the accompanying consolidated statements of operations for each of the years ended December 29, 2024, December 31, 2023 and December 25, 2022 based on the terms of the agreement.
(dollars in thousands, except par values and per unit values)
The change in deferred revenue is as follows:
| Deferred revenue, balance as of December 25, 2022 | $ 10,667 |
|---|---|
| Revenue recognized that was included in the deferred revenue balance | (1,340) |
| 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 | 10,541 |
| Less: Current portion of deferred revenue | (648) |
| Noncurrent portion of deferred revenue | $ 9,893 |
| Deferred revenue, balance as of December 31, 2023 | $ 10,541 |
| Revenue recognized that was included in the deferred revenue balance | (1,017) |
| 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 | 11,302 |
| Less: Current portion of deferred revenue | (689) |
| Noncurrent portion of deferred revenue | $ 10,613 |
Revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) for fiscal years subsequent to December 29, 2024 are as follows:
| 2025 | $ 689 | |---------------------|--------------| | 2026 | 678 | | 2027 | 668 | | 2028 | 669 | | 2029 | 589 | | Thereafter | 8,009 $ 11,302 |
(dollars in thousands, except par values and per unit values)
11. Income Taxes
Income tax (expense) benefit is as follows:
| | 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 | Income tax (expense) benefit for years ended December 29, 2024, December 31, 2023 and December 25, 2022 differed from the amounts computed by applying the U.S.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the noncurrent portion of deferred revenue as of December 31, 2023, was $9,893 (in thousands) based on one table and $9,373 (in thousands) based on another table. Deferred revenue consists of initial franchise license and development fees that Bojangles has received but has not yet fulfilled its obligations for under the franchise agreements. It also includes revenue from an agreement with a vendor for beverage purchases by Bojangles and its franchisees over several years.
The deferred revenue is separated into current and noncurrent portions. The current portion represents the amount of revenue Bojangles expects to recognize within the next year, while the noncurrent portion represents revenue expected to be recognized beyond the next year. This distinction is important for understanding Bojangles's financial obligations and future revenue streams.
For a prospective franchisee, understanding deferred revenue is crucial because it reflects Bojangles's obligations to provide services and support in the future. A higher noncurrent portion of deferred revenue might indicate a strong pipeline of future obligations related to franchise agreements. It is important to note that there are two different values for the noncurrent portion of deferred revenue as of December 31, 2023, in the provided excerpts, so a prospective franchisee may want to clarify this discrepancy with Bojangles.