What was the weighted-average discount rate for Bojangles' finance leases as of December 29, 2024?

According to Bojangles's 2025 Franchise Disclosure Document, the weighted-average discount rate for finance leases as of December 29, 2024, was 6.5%. This figure reflects the average interest rate used to discount future lease payments back to their present value for finance leases held by Bojangles. For comparison, the weighted-average discount rate for finance leases as of December 31, 2023, was 6.6%.

The discount rate is a critical factor in determining the present value of lease obligations and affects the financial statements of Bojangles. A lower discount rate would result in a higher present value of lease liabilities, while a higher rate would decrease the present value. Changes in this rate from year to year can reflect broader economic trends or specific changes in Bojangles's financial situation.

Prospective franchisees should understand the implications of these rates, as they provide insight into how Bojangles manages its lease obligations. While franchisees typically enter into their own lease agreements for their restaurant locations, understanding Bojangles's overall financial strategies and lease management can be beneficial. Reviewing these rates over several years, as presented in the FDD, can also reveal trends and potential future impacts on the company's financial health.