What was the total amount of deferred financing costs for Bojangles as of December 29, 2024?

According to Bojangles's 2025 Franchise Disclosure Document, as of December 29, 2024, the total deferred financing costs were $12,632 (in thousands). After deducting accumulated amortization of $480 (in thousands), the net deferred financing costs amounted to $12,152 (in thousands). For comparison, as of December 31, 2023, the deferred financing costs were $10,374 (in thousands), with accumulated amortization of $6,484 (in thousands), resulting in net deferred financing costs of $3,890 (in thousands).

Deferred financing costs typically represent expenses incurred by Bojangles to secure financing, such as loans or other debt instruments. These costs are initially capitalized on the balance sheet and then amortized over the life of the related financing agreement. Amortization is the process of gradually writing off the initial cost of an asset. The accumulated amortization represents the total amount of these costs that have been expensed to date.

The increase in deferred financing costs from 2023 to 2024 suggests that Bojangles may have taken on additional debt or refinanced existing debt during the year. Franchisees should be aware that these financing activities at the corporate level could impact the overall financial health and stability of Bojangles, which in turn could affect the support and resources available to franchisees.

Prospective franchisees should consider the implications of Bojangles's debt and financing costs. While these costs are a normal part of business operations, significant increases could indicate higher financial risk. It is advisable for potential franchisees to review the complete financial statements and consult with a financial advisor to understand the full impact of these costs on the franchise system.