What was the net value of Jersey Mikes' intangible assets in 2024?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ndment. This Amendment shall have no force or effect if such jurisdictional requirements are not met.
- As to any state law described in this Amendment that declares void or unenforceable any provision contained in the Development Agreement, Franchisor reserves the right to challenge the enforceability of the state law by, among other things, bringing an appropriate legal action or by raising the claim in a legal action or arbitration that you have initiated.
The parties have executed this Amendment as of the Effective Date below.
| CURRENT ASSETS: | | | |---|---|---| | Cash and cash equivalents (include restricted cash of $103,528,217 and | | | | $74,178,062 in 2024 and 2023, respectively) | $ 843,405,358 | $ 139,028,486 | | Accounts receivable—net | 48,298,149 | 41,744,552 | | Notes receivable | 718,907 | 588,418 | | Notes receivable—related party | 433,633 | 434,024 | | Prepaid expenses and other current assets | 8,938,746 | 14,392,571 | | Total current assets | 901,794,793 | 1 96,188,051 | | PROPERTY AND EQUIPMENT—Net | 89,733,519 | 47,474,307 | | OTHER ASSETS: | | | | Due from unconsolidated affiliates | 3,448,191 | 4,617,304 | | Due from unconsolidated affiliates-related party | 10,612,911 | 6,419,449 | | Notes receivable—net of current portion | 4,395,857 | 3,118,304 | | Notes receivable—related party—net of current portion | 1,765,166 | 2,123,844 | | Intangible assets—net | 18,561,025 | 18,044,004 | | Right of use asset—net | 11,188,992 | 7,207,405 | | Other assets | 4,111,932 | 2,176,382 | | Total other assets | 54,084,074 | 43,706,692 | | TOTAL ASSETS | $ 1,045,612,386 | $ 287,369,050 | | LIABILITIES AND STOCKHOLDER’S DEFICIT | | | | CURRENT LIABILITIES: | | | | Accounts payable and accrued expenses | $ 109,523,247 | $ 8 7,666,971 | | Unearned franchise fees | 4,031,349 | 3,843,867 | | Deferred revenue | 814,961 | - | | Current portion of notes payable | 3,123,955 | 2,985,852 | | Current portion of lease liability | 1,789,811 | 1,589,824 | | Current portion of long-term debt | 15,625,000 | - | | Other current liabilities | 152,823 | 168,373 | | Total current liabilities | 1 35,061,146 | 96,254,887 | | LONG-TERM DEBT—Net of debt issuance costs of $28,809,729 and | | | | $13,756,604 in 2024 and 2023, respectively | 1,699,315,271 | 979,993,396 | | NOTES PAYABLE—Net of current portion—net of financing costs of $179,032 | | | | and $28,138 in 2024 and 2023, respectively | 52,779,898 | 25,054,747 | | UNEARNED FRANCHISE FEES—Net of current portion | 6,200,099 | 7,818,526 | | LEASE LIABILITY—Net of current portion | 9,399,181 | 5,617,581 | | OTHER NONCURRENT LIABILITIES | 773,488 | 1,039,510 | | Total liabilities | 1,903,529,083 | 1,115,778,647 | | COMMITMENTS AND CONTINGENCIES (Note 14) | | | FRANCHISOR: A SUB ABOVE, LLC
AMENDMENT TO A SUB ABOVE, LLC AREA DEVELOPMENT AGREEMENT FOR THE STATE OF MARYLAND
| STOCKHOLDER’
Source: Item 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, the net value of their intangible assets in 2024 was $18,561,025. This figure represents the value of assets that are not physical, such as trademarks, software, and website designs, after accounting for accumulated amortization. In 2023, the net intangible assets were valued at $18,044,004.
Intangible assets are typically amortized over their useful life, which means their value is gradually reduced on the balance sheet. The initial value of Jersey Mikes' intangible assets in 2024 was $44,049,102, but after subtracting accumulated amortization of $27,351,997, the net value was $16,697,105. The difference between the listed net value of $18,561,025 and the calculated net value of $16,697,105 is not explained in the provided documentation.
For a prospective franchisee, understanding the composition and valuation of these intangible assets is crucial. These assets, particularly trademarks and proprietary software, can significantly contribute to the brand's competitive advantage. Franchisees benefit from the established brand recognition and operational tools that these assets represent. However, it's important to note that the value of intangible assets can fluctuate and is subject to amortization, which impacts the company's overall financial health.
It would be prudent for a potential Jersey Mikes franchisee to inquire about the specific types of intangible assets the company holds, the methods used to determine their value, and the amortization schedules applied. Understanding these factors can provide a clearer picture of the long-term value and stability of the franchise system.