What was the value of assets acquired under operating leases, including modifications, for Bojangles as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
- (a) Right of use assets were recorded net of accumulated amortization of $167,608 and $133,983 as of December 29, 2024 and December 31, 2023, respectively.
- (b) Finance lease assets are included in property and equipment, net and were recorded net of accumulated amortization of $2,914 and $2,086 as of December 29, 2024 and December 31, 2023, respectively.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the value of right-of-use assets, which represent assets acquired under operating leases, was $215,821,000 as of December 31, 2023. This figure represents the company's rights to use leased assets for the term of the lease. These assets are a significant part of Bojangles's financial structure, reflecting their reliance on leased properties for restaurant locations and other operational needs.
For a prospective franchisee, understanding the lease obligations is crucial. The right-of-use asset value indicates the scale of Bojangles's leasing activity and provides context for the lease liabilities. Reviewing the lease terms, remaining lease durations, and associated costs is essential for assessing the financial commitments a franchisee might face, especially if they involve leasing property from Bojangles or a third party.
It's important to note that the right-of-use assets are recorded net of accumulated amortization, which was $133,983,000 as of December 31, 2023. Amortization reflects the expense recognized over the lease term as the value of the asset is used. Franchisees should consider how these accounting practices affect the reported financial performance and the overall cost of leasing.
In addition to operating leases, Bojangles also utilizes finance leases. As of December 31, 2023, the value of finance lease assets was $2,514,000. These assets are included in property and equipment, net of accumulated amortization. Understanding the difference between operating and finance leases is important for assessing the nature of the assets and the associated financial obligations.