Are sales and use taxes included in the reported revenues for Bojangles' 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, the company reports revenues from company-operated restaurants net of sales and use taxes. This means that the sales figures reported do not include the taxes collected from customers, which are then remitted to governmental taxing authorities.
For a prospective franchisee, this is important because it provides a clearer picture of the actual revenue generated from sales of food and other products, without the distortion of sales taxes. This net reporting method is a standard accounting practice in the restaurant industry, as it accurately reflects the company's earnings from its core business operations.
Therefore, when evaluating the financial performance of Bojangles' company-operated restaurants, franchisees can be assured that the revenue figures presented are exclusive of sales and use taxes, offering a more precise understanding of the restaurants' sales performance.