What was the total value of Bojangles' finance lease assets in the earlier year presented in the table?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
-----|----|----------------------|--|--| | Less: Accumulated amortization | | (9,072) | | (7,539) | | | | Franchise rights, net | $ | 36,928 | $ | 38,461 | | |
Amortization expense related to franchise rights was $1,533, $1,533 and $1,534 for the years ended December 29, 2024, December 31, 2023 and December 25, 2022, respectively, and is included in depreciation and amortization expense in the accompanying financial statements.
Future amortization expense for fiscal years subsequent to December 29, 2024 is as follows:
| 2025 | $ 1,534 |
|---|---|
| 2026 | 1,533 |
| 2027 | 1,533 |
| 2028 | 1,534 |
| 2029 | 1,533 |
| Thereafter | 29,261 $ 36,928 |
**7. Accrued
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the value of finance lease assets is detailed in the Item 22 section, which pertains to contracts. The table provides a comparison of assets and liabilities related to leases for the fiscal years ending December 29, 2024, and December 31, 2023. All values are expressed in thousands of dollars.
Specifically, the finance lease assets for the year ending December 31, 2023, amounted to $2,514 thousand. This figure represents the value of assets that Bojangles has leased under financing arrangements, which transfer substantially all the risks and rewards of ownership to the lessee. These assets are distinct from right-of-use assets, which pertain to operating leases.
For a prospective franchisee, understanding these figures is crucial as it provides insight into Bojangles's financial obligations and asset management strategies related to leasing. Finance leases typically involve long-term commitments and are reflected on the balance sheet, impacting the company's overall financial health and stability. Reviewing these figures over multiple years can reveal trends in Bojangles's leasing practices and their potential impact on profitability and cash flow.