How does Bojangles recognize revenues from its 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' 2025 Franchise Disclosure Document, revenues from company-operated restaurants are primarily recognized when customers pay for their products at the point of sale. This means that Bojangles records the revenue as soon as the transaction occurs.
Company-operated restaurant revenues also include amounts paid to Bojangles for products upon delivery to the customer. However, the revenue does not include any delivery fees charged to the customer by third-party delivery providers. This indicates that Bojangles uses third-party services for delivery and only recognizes the revenue from the sale of the food itself.
Bojangles reports its company-operated restaurant revenues net of sales and use taxes. This means that the sales and use taxes collected from customers are not included in the reported revenue figures, as these taxes are remitted to governmental taxing authorities.