What was the total amount of unspent funds in the co-operative advertising funds actively managed by the Company for Bojangles as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
ted entirely to the Company's performance obligation under the franchise agreement. Continuing franchise royalty revenues are based on a percentage of monthly sales, generally ranging from 3% to 5% for franchisees operating within the United States of America and 5% for franchisees with operations in other countries and are recognized on the accrual basis as franchise sales occur. In certain circumstances, the Company may defer, reduce or waive franchise license fees and/or reduce the franchise royalty percentage for a period of time.
Franchise contributions to marketing and co-op advertising funds managed by the Company are calculated as a percentage of franchise restaurant sales or based on a fixed monthly fee per restaurant. Franchise marketing and co-op advertising fund contribution revenues generally represent sales-based or fixed monthly fee amounts that are related entirely to the Company's performance obligation under the franchise agreement and are recognized as franchise sales occur. Franchisees may receive cash and/or noncash incentives or concessions, which are accounted for as a variable consideration. Revenue is recognized net of variable consideration when the performance obligation has
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the co-operative advertising funds actively managed by the company had $2,818 in unspent funds as of December 31, 2023. These funds are included in the company's consolidated balance sheets.
Bojangles franchisees should note that these co-operative advertising funds are separate from the marketing development fund, which also had unspent funds. The marketing development fund had $360 in unspent funds as of December 31, 2023. Franchisees contributed $10,310 to the co-operative advertising funds for the year ended December 31, 2023.
These advertising funds are used for the benefit of the Bojangles system, and the franchisor has discretion over how the funds are spent. It is important for prospective franchisees to understand how these funds are managed and how they benefit the overall brand.