What was the total deferred income tax assets for Bojangles as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
d | | | | | | | | U.S. federal | | 1,794 | | (299) | | 1,945 | | State and local | | 185 | | (689) | | 289 | | Total deferred income tax benefit (expense) | | 1,979 | | (988) | | 2,234 | | Income tax (expense) benefit | $ | (7,140) | $ | (6,241) | $ | 3,087 | Income tax (expense) benefit for years ended December 29, 2024, December 31, 2023 and December 25, 2022 differed from the amounts computed by applying the U.S. federal income tax rate to pretax income as a result of the following:
| Years Ended | |||||
|---|---|---|---|---|---|
| December 29, 2024 | December 31, 2023 | December 25, 2022 | |||
| Computed "expected" tax benefit | $ | 2,278 | $ | 5,039 | $ 9,985 |
| Reduction (increase) in income taxes resulting from | |||||
| Amortization of goodwill not deductible for |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the total deferred income tax assets as of December 31, 2023, was $72,850 (in thousands). Deferred income tax assets represent future tax benefits that Bojangles can use to reduce its income tax obligations. These assets arise from temporary differences between the book value of assets and liabilities and their tax bases, as well as from carryforwards of tax losses or credits.
For a prospective franchisee, understanding deferred income tax assets may not have an immediate impact on day-to-day operations. However, it provides insight into the financial strategies and tax planning of Bojangles. A strong deferred tax asset position can indicate effective tax management and potential for future tax savings, which indirectly benefits the entire franchise system through improved financial stability.
It is important to note that the realization of these deferred tax assets depends on Bojangles generating sufficient future taxable income. While the document states that management believes it is more likely than not that the company will realize these benefits, this is still subject to economic conditions and the company's future performance. Franchisees should be aware of these underlying assumptions and consider them as part of their overall assessment of the franchise's financial health.
In summary, while the deferred income tax assets figure itself may not directly affect a franchisee's daily activities, it is a component of the overall financial picture of Bojangles. Prospective franchisees should consider this information in conjunction with other financial metrics and disclosures to gain a comprehensive understanding of the franchise's financial position and stability.