What was the total amortization expense for Bojangles for the year ended December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------|----------------------| | Assets | | | | Current assets | | | | Cash and cash equivalents | $ 16,381 | $ 20,361 | | Accounts receivables, net of allowance of | | | | $115 and $93, respectively | 6,614 | 4,676 | | Vendor receivables | 2,732 | 2,747 | | Inventories, net | 3,549 | 3,981 | | Prepaid and other current assets | 418 | 408 | | Total current assets | 29,694 | 32,173 | | Property and equipment, net | 84,985 | 83,611 | | Goodwill, net | 142,758 | 175,663 | | Brand | 340,500 | 340,500 | | Franchise rights, net | 36,928 | 38,461 | | Right of use | 210,703 | 215,821 | | Other noncurrent assets | 892 | 811 | | Total assets | $ 846,460 | $ 887,040 | | Liabilities and Member's Equity | | | | Current liabilities | | | | Accounts payable | $ 9,694 | $ 9,547 | | Accrued expenses | 13,829 | 9,743 | | Due to related parties | 1,442 | 7,562 | | Current operating lease liabilities | 32,981 | 31,132 | | Current maturities of finance lease obligations | 1,396 | 807 | | Current deferred revenue | 575 | 533 | | Total current liabilities | 59,917 | 59,324 | | | | | | Operating lease liabilities, less current portion | 205,416 | 215,418 | | Finance lease obligations, less current maturities | 3,791 | 2,325 | | Deferred revenue, less current portion | 10,208 | 9,373 | | | | | | Total liabilities | 279,332 | 286,440 | | Commitments and contingencies - See Note 8 and 10 | | | | Member's equity | 567,128 | 600,600 | | Total liabilities and member's equity | $ 846,460 | $ 887,0
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the total amortization expense for the year ending December 31, 2023, was $36,109 (in thousands). This figure is part of the "Other operating expenses" category in the Statements of Income. Amortization is the gradual reduction of a debt or the value of an asset over a specific period. In accounting, it refers to the process of spreading out the cost of an intangible asset over its useful life.
For a prospective Bojangles franchisee, understanding amortization is crucial for assessing the financial health and profitability of the franchise. Amortization expense can impact the net income and cash flow of the business, which are key metrics for evaluating investment returns. Franchisees should consider how amortization expenses affect their overall financial performance and factor this into their financial projections.
It's important to note that this amortization expense is part of the broader "depreciation and amortization" line item, which also includes depreciation of tangible assets. Franchisees should review the complete financial statements and related notes to fully understand the nature and magnitude of these expenses. Additionally, franchisees should consult with a financial advisor to assess the tax implications of amortization and depreciation.