As of December 31, 2024, what was the approximate amount of cash equivalents held by Jersey Mikes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ies at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents—Cash includes balances on deposit at US banks. Highly liquid investments purchased with an original ma
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, as of December 31, 2024, Jersey Mike's had approximately $0 in cash equivalents. Cash equivalents are defined as highly liquid investments with an original maturity of three months or less. In contrast, the company held approximately $5,300,000 in cash equivalents as of December 31, 2023.
It is important to note that this figure represents the cash and cash equivalents held directly by Jersey Mike's Franchise Systems, LLC. This does not include cash held by individual franchisees or in other related entities. The FDD also mentions "restricted cash," which is cash held to meet specific reserve requirements related to securitization transactions and cash collected on behalf of franchisees and marketing cooperatives.
A prospective franchisee should be aware of the distinction between cash, cash equivalents, and restricted cash when reviewing Jersey Mike's financial statements. Understanding these categories can provide a clearer picture of the company's liquidity and financial health. It's also worth investigating the reasons for the significant decrease in cash equivalents from 2023 to 2024 to fully understand the company's financial strategies.