When does Bojangles perform its annual impairment review of the Bojangles brand?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company performs its annual impairment review of the Brand at December 1, first using the qualitative assessment then quantitative assessment if impairment is determined to be more likely than not. A quantitative assessment is performed by comparing the carrying value of the Brand to the estimated fair value of the Brand. An impairment occurs if the carrying amount of the Brand exceeds the estimated fair value. No qualitative impairment indicators were identified for the Brand in the Company's 2024, 2023, or 2022 assessments.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the company conducts its annual impairment review of the Bojangles brand on December 1st. This review is performed to assess the value of the Bojangles brand as an indefinite-lived intangible asset.
The impairment review involves a two-step process. First, Bojangles uses a qualitative assessment to determine if a quantitative assessment is necessary. If the qualitative assessment suggests that impairment is likely, then a quantitative assessment is performed. The quantitative assessment compares the carrying value of the Bojangles brand to its estimated fair value.
An impairment is recognized if the carrying amount of the Bojangles brand exceeds its estimated fair value. The FDD notes that no qualitative impairment indicators were identified in the 2024, 2023, or 2022 assessments, and no triggering events requiring further evaluation occurred during those years.