What is the fair value of the Series 2021 Class A-2-II financial liability for Jersey Mikes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Financial Liabilities | Value | Fair Value | Value | Fair Value |
|---|---|---|---|---|
| Series 2019 Class A-2 | $ 4 96,250,000 | $ 4 90,543,125 | $ 4 96,250,000 | $ 4 69,303,625 |
| Series 2021 Class A-2-I | 248,750,000 | 238,551,250 | 248,750,000 | 224,646,125 |
| Series 2021 Class A-2-II | 248,750,000 | 221,462,125 | 248,750,000 | 207,681,375 |
| Series 2024-1 Class A2 | 750,000,000 | 743,025,000 | - | - |
Source: Item 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the Series 2021 Class A-2-II financial liability has both a 'Value' and a 'Fair Value' listed for two different periods. The 'Value' for both periods is $248,750,000. The 'Fair Value' is $221,462,125 for one period and $207,681,375 for the other period.
It is important to note that the FDD provides two different fair values for the Series 2021 Class A-2-II financial liability, but the document does not specify the exact dates or periods to which each fair value corresponds. This lack of clarity could make it difficult for a potential franchisee to fully understand the financial obligations and risks associated with this specific liability.
Prospective franchisees should seek clarification from Jersey Mikes regarding the specific dates or periods associated with each 'Fair Value' to fully understand the context of these figures. Understanding the timing of these valuations is crucial for assessing the financial health and stability of the franchise system.