What was the amount of loss on disposal of assets for Capriottis Sandwich Shop in 2023?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Deficit) | (3,702,160) | (2,797,283) | | Total Liabilities and Equity (Deficit) | $ 19,747,550 | $ 20,010,234 |
Capriotti's Sandwich Shop, Inc. and Subsidiaries Consolidated Statements of Operations
| Year ended | December 31, 2023 | December 25, 2022 |
|---|---|---|
| Revenues Franchise royalties and advertising contributions Sales by Company-owned restaurants Franchise fees Other revenues | $ 13,803,571 12,324,497 1,947,250 144,257 | $ 12,801,525 12,843,754 1,694,000 98,855 |
| Total Revenues | 28,219,575 | 27,438,135 |
| Expenses Cost of sales by Company-owned restaurants General and administrative expenses | 3,943,071 24,600,553 | 4,098,612 24,693,491 |
| Total Expenses | 28,543,624 | 28,792,103 |
| Loss, before depreciation and amortization | (324,049) | (1,353,968) |
| expense | ||
| Depreciation and Amortization Expense | 1,240,579 | 1,689,326 |
| Operating Loss | (1,564,628) | (3,043,293) |
| Other Income (Expense) Interest expense Loss on disposal of Company-owned restaurants, net Transaction expense Other income Gain on extinguishment of Paycheck Protection Program loans | (1,379,854) (670) - 2,207,253 - | (1,271,789) (211,026) (11,700) 122,059 43,295 |
| Total Other Income (Expense) | 826,729 | (1,329,161) |
| Loss, before state income tax | (737,899) | (4,372,455) |
| benefit | ||
| State Income Tax Benefit | - | (3,517) |
| Net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the loss on disposal of Company-owned restaurants, net, for the year ended December 31, 2023, was $670. This figure represents losses incurred when Capriottis Sandwich Shop disposed of assets from its company-owned restaurants during that fiscal year.
For a prospective franchisee, understanding this figure provides insight into potential financial risks associated with asset management and disposal within the Capriottis Sandwich Shop system. While franchisees primarily operate their own locations, this number reflects the broader financial health and operational decisions of the parent company. Significant losses on disposal could indicate challenges in managing company-owned assets, which might indirectly affect the brand's overall performance and stability.
It's important to note that this loss pertains specifically to company-owned restaurants and may not directly reflect the experiences of individual franchisees. However, franchisees should consider this information as part of their due diligence, evaluating how Capriottis Sandwich Shop manages its assets and makes strategic decisions regarding its restaurant portfolio. Further inquiry into the reasons behind these disposals and the company's asset management strategies would be prudent for potential investors.