What was the reported amount of Bojangles' finance lease assets as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 29, 2024 | December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Right of use (a) | $ | 210,703 | $ | 215,821 | ||
| Finance lease assets (b) | 4,660 | 2,514 | ||||
| Total lease assets | $ | 215,363 | $ | 218,335 |
- (b) Finance lease assets are included in property and equipment, net and were recorded net of accumulated amortization of $2,914 and $2,086 as of December 29, 2024 and December 31, 2023, respectively.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the company's finance lease assets were $2,514 as of December 31, 2023. This figure represents the value of assets that Bojangles leases under financing arrangements, which are essentially treated as if the company owns the assets for accounting purposes. These assets are included in property and equipment, net.
The finance lease assets are recorded net of accumulated amortization. As of December 31, 2023, the accumulated amortization for finance lease assets was $2,086. Amortization is the systematic allocation of the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.
For a prospective franchisee, understanding the nature and extent of finance leases is important because it reflects Bojangles's strategy in acquiring and utilizing assets. Finance leases can impact the company's financial statements, including the balance sheet and income statement, and may have implications for financial ratios and performance metrics. Reviewing the complete financial statements and related notes is crucial to assess the overall financial health and leasing practices of Bojangles.