What was the net loss 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)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the company experienced a net loss in 2024. Specifically, the net loss attributable to Capriotti's Sandwich Shop, Inc. was $4,865,330 for the year ended December 29, 2024. This figure represents the financial performance of the company after accounting for all revenues, expenses, and other income/losses during that period.
For a prospective franchisee, this net loss indicates that Capriottis Sandwich Shop's expenses exceeded its revenues in 2024. While not uncommon for businesses, especially during growth phases or challenging economic times, it's a crucial factor to consider. A potential franchisee should investigate the reasons behind the loss, such as high operating costs, investments in expansion, or other factors impacting profitability. Understanding the context of this loss is essential for assessing the financial stability and future prospects of the franchise system.
It's also important to note that the net loss attributable to noncontrolling interest was $737,952. This amount reflects the portion of the net loss that is allocated to other ownership interests outside of Capriotti's Sandwich Shop, Inc. The overall net loss, before considering the noncontrolling interest, was $5,603,282. Reviewing these figures in comparison to previous years, such as the net loss of $349,445 in 2023, can provide a clearer picture of the company's financial trajectory and potential risks.
Prospective franchisees should carefully review the complete financial statements and consult with a financial advisor to fully understand the implications of Capriottis Sandwich Shop's financial performance. Analyzing the trends in revenue, expenses, and profitability over several years will offer a more comprehensive assessment of the franchise's financial health and sustainability.