How does Bojangles recognize revenues from Company-operated restaurants?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenues of Company-operated restaurants are primarily recognized as customers pay for products at the point of sale. Company-operated restaurant revenues also include amounts paid to the Company for products upon delivery to the customer and do not include delivery fees charged to the customer by third-party delivery providers. The Company reports Company-operated restaurant revenues net of sales and use taxes collected from customers and remitted to governmental taxing authorities.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, revenues from company-operated restaurants are primarily recognized when customers pay for their orders at the point of sale. This means that Bojangles records the revenue as soon as the transaction occurs at the register.
In addition to point-of-sale transactions, Bojangles also recognizes revenue for products when they are delivered to the customer. However, the company does not include any delivery fees charged by third-party delivery services in its company-operated restaurant revenues. This indicates that Bojangles uses external delivery providers and only accounts for the sale of the food itself.
Bojangles reports its company-operated restaurant revenues net of sales and use taxes. This means that the company deducts the amount of sales and use taxes collected from customers, which are then remitted to governmental taxing authorities, from the total revenue reported. This is a standard accounting practice to accurately reflect the company's actual earnings from sales.