What was the reported rental income for Bojangles for the year ended December 29, 2024?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------|----------------------|----------------------| | Weighted-average remaining lease term (years) | | | | Operating leases | 7.7 | 7.8 | | Finance leases | 3.9 | 3.9 | | Weighted-average discount rate | | | | Operating leases | 7.9 | 7.7 | | | % | % | | Finance leases | 6.7 | 7.3 | | | % | % |
Lease costs and rental income were as follows:
| Years Ended | ||||||
|---|---|---|---|---|---|---|
| December 29, 2024 | December 31, 2023 | December 25, | 2022 | |||
| Finance lease cost | ||||||
| Amortization of lease assets (a) | $ | 856 | $ | 407 | $ | 319 |
| Interest on lease obli |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the reported rental income, categorized as 'income from leases and subleases,' for the year ended December 29, 2024, was $9,609 (in thousands). This figure represents income Bojangles received from leasing or subleasing properties.
For a prospective franchisee, this indicates that Bojangles engages in leasing or subleasing activities, which generate income for the company. However, this income is not directly received by franchisees. Instead, it contributes to the overall financial performance of Bojangles as a company.
It's important to note that this rental income is offset against the total rent expense. The total rent expense includes minimum land, building, and equipment rental expenses, as well as contingent and percentage rental expenses. The net rent expense, after deducting the income from leases and subleases, provides a clearer picture of Bojangles's actual rental costs. For the year ended December 29, 2024, the net rent expense was $38,463 (in thousands).