What was the depreciation and amortization expense for Capriottis Sandwich Shop in 2022?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Authorized 45,000,000 shares ($0.001 par value), | ||
| 7,130,000 shares issued and outstanding | 7,130 | 7,130 |
| Nonvoting common stock: | ||
| Authorized 30,000,000 shares ($0.001 par value), | ||
| 7,920,691 shares issued and outstanding | 7,920 | 7,920 |
| Additional paid-in capital | 21,131,767 | 21,131,767 |
| Less: 373,325 shares of treasury stock at cost | (823,845) | (823,845) |
| Accumulated deficit | (24,293,775) | (23,777,352) |
| Total Capriotti's Sandwich Shop, Inc.’s Equity (Deficit) | (3,970,803) | (3,454,380) |
| Noncontrolling Interest | 268,643 | 657,097 |
| Total Equity (Deficit) | (3,702,160) | (2,797,283) |
| Total Liabilities and Equity (Deficit) | $ 19,747,550 December 25, | $ 20,010,234 |
| Year ended | 2023 2022 | |
| Revenues | ||
| Franchise royalties and advertising contributions | $ 13,803,571 $ 12,801,525 | |
| Sales by Company-owned restaurants | 12,324,497 12,843,754 | |
| Franchise fees | 1,947,250 1,694,000 | |
| Other revenues | 144,257 98,855 | |
| Total Revenues | 28,219,575 27,438,135 | |
| Expenses | ||
| Cost of sales by Company-owned restaurants | 3,943,071 4,098,612 | |
| General and administrative expenses | 24,600,553 24,693,491 | |
| Total Expenses | 28,543,624 28,792,103 | |
| Loss, before depreciation and amortization | ||
| expense | (324,049) (1,353,968) | |
| Depreciation and Amortization Expense | 1,240,579 1,689,326 | |
| Operating Loss | (1,564,628) (3,043,293) | |
| Other Income (Expense) | ||
| Interest expense | (1,379,854) (1,271,789) | |
| Loss on disposal of Company-owned restaur |
Source: Item 23 — RECEIPTS (FDD pages 73–303)
What This Means (2025 FDD)
According to the 2025 FDD, Capriottis Sandwich Shop's depreciation and amortization expense for the year ended 2022 was $1,689,326. This figure reflects the accounting expense recognized for the reduction in value of the company's assets due to wear and tear, obsolescence, or amortization of intangible assets during that period.
For a prospective franchisee, understanding depreciation and amortization is crucial as it impacts the franchisor's overall financial health. While franchisees do not directly pay this expense, the financial stability of Capriottis Sandwich Shop can influence the support, resources, and brand strength available to franchisees. A high depreciation and amortization expense could indicate significant investments in assets, but it could also signal aging equipment or intangible assets that are losing value.
It's important to note that this figure is for the overall company-owned operations and does not reflect the expenses of individual franchised locations. Franchisees will have their own depreciation and amortization expenses related to their specific restaurant assets. Reviewing these figures in the context of Capriottis Sandwich Shop's overall financial statements can provide insights into the company's investment strategies and asset management practices. Franchisees should consult with financial advisors to understand how these factors might indirectly affect their investment.