What was the interest expense for Capriottis Sandwich Shop in 2023?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 29, | December 31, | |
|---|---|---|
| Year ended | 2024 | 2023 |
| Revenues | ||
| Franchise royalties and advertising contributions | $ 11,952,734 | $ 13,803,571 |
| Sales by Company-owned restaurants | 14,277,787 | 12,324,497 |
| Franchise fees | 1,329,000 | 1,947,250 |
| Other revenues | 155,728 | 144,257 |
| Total Revenues | 27,715,249 | 28,219,575 |
| Expenses | ||
| Cost of sales by Company-owned restaurants | 4,731,124 | 3,943,071 |
| General and administrative expenses | 25,452,423 | 24,600,553 |
| Total Expenses | 30,183,547 | 28,543,624 |
| Loss, before depreciation and amortization expense | (2,468,298) | (324,049) |
| Depreciation and Amortization Expense | 1,353,564 | 1,240,579 |
| Operating Loss | (3,821,862) | (1,564,628) |
| Other Income (Expense) | ||
| Interest expense | (1,565,997) | (1,379,854) |
| Loss on disposal of Company-owned restaurants, net | (191,707) | (670) |
| Other income (expense) | (23,716) | 2,207,253 |
| Total Other Income (Expense) | (1,781,420) | 826,729 |
| Net Loss | (5,603,282) | (737,899) |
| Net Loss Attribute to Noncontrolling Interest | 737,952 | 388,454 |
| Net Loss Attributable to Capriotti’s Sandwich Shop, Inc. | $ (4,865,330) | $ (349,445) |
Source: Item 23 — RECEIPTS (FDD pages 73–303)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the interest expense for the year ending December 31, 2023, was $(1,379,854). This figure represents the cost Capriottis Sandwich Shop incurred for its debt obligations during that fiscal year.
For a prospective franchisee, understanding the franchisor's financial health and obligations is crucial. Interest expense is one indicator of the company's debt burden. A high-interest expense can reduce profitability and potentially limit the franchisor's ability to invest in franchisee support, marketing, or innovation.
It is important to note that this interest expense is specific to Capriottis Sandwich Shop, Inc. and does not directly reflect the potential financing costs a new franchisee might incur to start their own Capriottis Sandwich Shop location. Franchisees should conduct their own financial analysis and consult with financial advisors to understand the potential costs and profitability of their individual franchise.