What was the net stockholder's distributions for Jersey Mikes for the year ending December 31, 2023?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
nc. Noncontrolling partner | $ 5,013,919 - | $ 21,256,637 - | $ 19,519,134 7,581 |
CONSOLIDATED STATEMENTS OF CHANGES IN DEFICIT FOR THE YEARS ENDED DECEMBER 31, 2024, 2023, AND 2022
| Common Stock | Accumulated Other Comprehensive Income | Retained Deficit | Noncontrolling Partner | Total Stockholder's Deficit | |
|---|---|---|---|---|---|
| BALANCE—January 1, 2022 | $ 40,000 | $ - | $ (837,787,989) | $ (161,463) | $ (837,909,452) |
| Stockholder's distributions—net | - | - | (13,109,182) | - | (13,109,182) |
| Net income | - | - | 19,519,134 | 7,581 | 19,526,715 |
| BALANCE—December 31, 2022 | 40,000 | - | (831,378,037) | (153,882) | (831,491,919) |
| Stockholder's distributions—net | - | - | (18,174,315) | - | (18,174,315) |
| Acquisition of member interest in | - | - | (153,882) | 153,882 | - |
| noncontrolling partner | |||||
| Net income | - | - | 21,256,6 |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the net stockholder's distributions for the year ending December 31, 2023, was a negative $18,174,315. This figure represents the amount of distributions made to the stockholders of Jersey Mike's during that year, reflecting a decrease in the company's retained deficit. This information is part of the consolidated financial statements, which provide an overview of the company's financial performance and position.
For a prospective franchisee, understanding these distributions is crucial as it provides insight into how Jersey Mike's manages its finances and allocates profits. While stockholder distributions are a normal part of corporate finance, significant fluctuations could signal changes in the company's financial strategy or performance. It is important to note that this figure is part of a larger financial picture, and should be considered alongside other financial metrics such as net income, assets, and liabilities.
It is also important to note that the acquisition of member interest in noncontrolling partner is listed as ($153,882) with 153,882. This means that Jersey Mike's acquired the remaining member interest in a noncontrolling partner. This transaction would simplify the ownership structure of Jersey Mike's and potentially streamline decision-making processes.
Overall, the stockholder's distributions and acquisition of member interest provide a snapshot of Jersey Mike's financial activities and strategic decisions during the year. A prospective franchisee should review these figures in the context of the company's overall financial health and consider seeking professional financial advice to fully understand the implications.