What was the range of the risk-free interest rate used in the weighted-average valuation assumptions for Bojangles for the year ended December 31, 2023?

According to Bojangles's 2025 Franchise Disclosure Document, the risk-free interest rate used in the weighted-average valuation assumptions for the year ended December 31, 2023, ranged from 3.8% to 4.7%.

This risk-free interest rate is a key component in determining the present value of future cash flows, which is used to assess the value of assets like the Bojangles brand. A higher risk-free rate generally results in a lower present value, while a lower rate results in a higher present value. The specific rate used reflects the prevailing market conditions and the perceived risk associated with future cash flows at that time.

For a prospective franchisee, understanding these valuation assumptions is important because they can influence decisions related to investments and financial planning. While franchisees may not directly use these rates in their day-to-day operations, they provide insight into how Bojangles assesses the value of its brand and other assets, which can indirectly affect franchise fees, financing terms, and overall business strategy.

It's also worth noting that these rates are subject to change based on economic conditions and market fluctuations. Franchisees should stay informed about these factors and how they might impact the financial aspects of their investment in a Bojangles franchise.