What was the total finance lease cost for Bojangles for the year ended December 25, 2022?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
ease right-of-use assets and lease liabilities:
| December 29, 2024 | December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Right of use (a) | $ | 210,703 | $ | 215,821 | ||
| Finance lease assets (b) | 4,660 | 2,514 | ||||
| Total lease assets | $ | 215,363 | $ | 218,335 | ||
| Liabilities | ||||||
| Current | ||||||
| Operating lease liabilities | $ | 32,981 | $ | 31,132 | ||
| Finance lease obligations | 1,396 | 807 | ||||
| Long-term | ||||||
| Operating lease liabilities | 205,416 | 215,4 |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the total finance lease cost for the year ended December 25, 2022, was $481,000, as detailed in the contracts section. This figure represents the sum of the amortization of lease assets, which was $319,000, and the interest on lease obligations, which amounted to $162,000 for that year. Finance leases typically involve assets that Bojangles essentially owns over the lease term, thus the costs include both the depreciation-like amortization of the asset and the interest expense on the associated debt.
For a prospective Bojangles franchisee, understanding these finance lease costs is crucial because it reflects the financial obligations Bojangles undertakes for its assets. While franchisees may not directly engage in these specific leases at the corporate level, it provides insight into how Bojangles manages its financial commitments and assets. This can be an indicator of the company's financial strategy and its approach to long-term investments in property and equipment.
It's also important to note that Bojangles has other lease-related expenses, such as operating lease costs and variable lease costs, which were significantly higher at $47,194,000 and $541,000, respectively, for the same period. Additionally, Bojangles generated rental income of $9,955,000, which offsets some of these expenses. Franchisees should consider these figures in the broader context of Bojangles' overall financial health and leasing strategies, as these factors can influence the stability and growth potential of the franchise system.
In summary, the $481,000 in total finance lease costs for 2022 provides a snapshot of Bojangles' financial obligations related to its leased assets. While this is just one component of the company's financial picture, it's a useful data point for prospective franchisees to consider when evaluating the financial management and strategic investment decisions of the franchisor.