What was the total equity (deficit) for Capriottis Sandwich Shop at the end of 2023?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Voting common stock: | ||
|---|---|---|
| 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 |
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's total equity (deficit) at the end of 2023 was approximately $(3,702,160). This figure represents the cumulative financial position of Capriottis Sandwich Shop, reflecting the difference between its assets and liabilities, and includes a noncontrolling interest. A deficit indicates that the company's liabilities exceeded its assets at that time.
Specifically, the components contributing to this total equity (deficit) include voting common stock valued at $7,130, nonvoting common stock valued at $7,920, additional paid-in capital of $21,131,767, a deduction of $823,845 for treasury stock, and an accumulated deficit of $24,293,775. The sum of these values results in a total equity (deficit) for Capriotti's Sandwich Shop, Inc. of $(3,970,803). After accounting for a noncontrolling interest of $268,643, the total equity (deficit) is $(3,702,160).
For a prospective franchisee, this information is crucial as it provides insight into the financial stability and overall health of Capriottis Sandwich Shop. A significant deficit may raise concerns about the company's ability to support its franchisees, invest in growth, or manage financial challenges. It is essential for potential franchisees to further investigate the reasons behind the deficit, the company's plans to address it, and the potential impact on the franchise system. Consulting with a financial advisor to interpret these figures in the context of the broader franchise opportunity is highly recommended.