What was the net decrease in cash for Capriottis Sandwich Shop in 2024?
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)
Based on the 2025 Franchise Disclosure Document, Capriotti's Sandwich Shop, Inc. experienced a net loss attributable to the company of $4,865,330 in 2024, compared to a net loss of $349,445 in 2023. This represents a significant increase in net loss from the previous year.
Total revenues for Capriotti's Sandwich Shop decreased from $28,219,575 in 2023 to $27,715,249 in 2024. At the same time, total expenses increased from $28,543,624 in 2023 to $30,183,547 in 2024. The combination of decreased revenues and increased expenses contributed to the increased net loss.
For a prospective franchisee, these figures highlight the financial challenges Capriotti's Sandwich Shop has faced. While revenue from company-owned restaurants increased, franchise royalties and advertising contributions decreased, which could reflect changes in the franchise network's performance or size. The substantial general and administrative expenses also warrant further investigation to understand their nature and potential impact on the franchisor's financial stability and support for franchisees.