What was the total member's equity for Bojangles as of December 29, 2024?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| (dollars in thousands) | December 29, 2024 | December 31, 2023 | December 25, 2022 |
|---|---|---|---|
| Revenues | |||
| Company-operated restaurant revenues | $ 593,957 | $ 594,036 | $ 544,368 |
| Franchise royalty revenues | 47,116 | 42,204 | 39,311 |
| Property and equipment rental revenues | 9,609 | 8,939 | 9,955 |
| Other franchise revenues | 954 | 1,546 | 536 |
| Total revenues | 651,636 | 646,725 | 594,170 |
| Restaurant operating expenses | |||
| Company-operated restaurant food and packaging costs | 178,743 | 184,476 | 183,354 |
| Company-operated restaurant labor costs | 175,628 | 184,777 | 174,606 |
| Company-operated restaurant operating costs | 142,494 | 139,712 | 136,080 |
| Company-operated restaurant depreciation and amortization | 23,890 | 20,156 | 15,89 |
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the total member's equity as of December 29, 2024, was $567,128,000. This figure represents the ownership value of the company attributable to its members or owners after deducting all liabilities from its assets. It is a key indicator of the company's financial health and stability.
Member's equity is influenced by several factors, including contributions, distributions, and net income or loss. For Bojangles, between December 31, 2023, and December 29, 2024, the member's equity changed due to several financial activities. These activities included contributions of property and equipment amounting to $26,791,000, distributions totaling $122,272,000, and a net income of $62,009,000. These transactions collectively resulted in a decrease in the total member's equity from $600,600,000 on December 31, 2023, to $567,128,000 on December 29, 2024.
Prospective franchisees should note that a healthy member's equity generally indicates a financially stable franchisor. However, it is essential to consider the trends and factors influencing this equity. Significant distributions, as seen in Bojangles's case, can reduce the equity, even if the company is profitable. Therefore, potential franchisees should investigate the reasons behind these distributions and assess their potential impact on the franchisor's long-term financial health and support capabilities.
Reviewing the statements of member's equity over several years, as presented in the FDD, provides a more comprehensive understanding of the franchisor's financial management and its commitment to growth and stability. This information, combined with other financial statements and disclosures in the FDD, can help potential franchisees make informed decisions about investing in a Bojangles franchise.