What was the provision for state income taxes, net of refunds, for Jersey Mikes in 2024?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
s follows:
| 2025 | $ 5,612,373 |
|---|---|
| 2026 | 4,822,550 |
| 2027 | 3,354,184 |
| 2028 | 2,287,552 |
| 2029 | 620,446 |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the provision for state income taxes for the year ending December 31, 2024, was $825. This figure represents the amount Jersey Mikes allocated for state income taxes during that fiscal year.
This minimal amount is due to Jersey Mike's Franchise Systems, LLC being treated as a disregarded entity for federal and state income tax purposes. As a result, Jersey Mikes does not incur US federal income taxes and only incurs minimal state income taxes. The earnings and losses are ultimately included in the consolidated income tax returns of Jersey Mike's Inc., the company's indirect parent.
For a prospective franchisee, this indicates that Jersey Mikes, as a franchise system, has a very low state income tax burden. However, franchisees should be aware that this applies to the franchisor entity and not necessarily to their individual franchise businesses, which will have their own tax obligations. Franchisees should consult with a tax professional to understand their specific tax liabilities.