What was the depreciation and amortization expense for Carvel in the year ended December 31, 2021?

According to Carvel's 2025 Franchise Disclosure Document, the depreciation and amortization expense for the fiscal year ended December 25, 2022, was $2,037. Note that the fiscal year end date is December 25, 2022, not December 31, 2021 as requested in the question.

Depreciation and amortization are accounting methods used to allocate the cost of assets over their useful lives. Depreciation applies to tangible assets like equipment, while amortization applies to intangible assets like patents or trademarks. For a Carvel franchisee, these expenses reflect the wear and tear or usage of assets and the allocation of the cost of intangible assets over time.

The depreciation and amortization expense is an important factor in determining the profitability of a Carvel franchise. It represents a non-cash expense that reduces the net income of the business. Monitoring this expense can help franchisees understand the true cost of their assets and make informed decisions about when to replace or upgrade them. It's important to note that while this expense does not involve an immediate cash outlay, it reflects the consumption of assets that will eventually require replacement, impacting future cash flows.