What is the usual condition for Bojangles to consolidate entities in its financial statements?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles and practices of the United States of America ("GAAP") and include our accounts and the accounts of our consolidated subsidiaries. The Company consolidates entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. All significant intercompany accounts and transactions are eliminated in consolidation.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, the company prepares its consolidated financial statements following generally accepted accounting principles in the United States. These statements include the accounts of Bojangles and its consolidated subsidiaries.
Bojangles consolidates entities in which it has a controlling financial interest. The usual condition for determining this control is ownership of a majority voting interest. This means that Bojangles includes the financial results of any subsidiary where it owns more than 50% of the voting shares.
All significant intercompany accounts and transactions are eliminated during the consolidation process. This ensures that the consolidated financial statements provide a clear and accurate picture of the overall financial position and performance of Bojangles and its subsidiaries, without double-counting any internal transactions.