What was the reported value of software developed for external use by Jersey Mikes in 2023?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
result of the Company's involvement with these variable interest entities is the amount advanced to the entities as of the reporting date.
8. INTANGIBLE ASSETS
Intangible assets consist of the following as of at December 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Area service agreements (a) | $ 139,417 | $ 139,417 |
| Trademarks (b) | 60,616 | 60,616 |
| Software developed for external use (c) | 37,638,956 | 34,253,212 |
| Website de |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, the reported value of software developed for external use in 2023 was $34,253,212. This figure represents the capitalized costs associated with software that Jersey Mikes developed for use outside of the company, likely by franchisees or customers. These costs include expenses related to coding, design, and testing of the software.
This valuation is significant for prospective franchisees because it reflects Jersey Mikes' investment in technology and its potential impact on franchise operations. Software developed for external use could include systems for online ordering, customer relationship management, or inventory management. A substantial investment in this area suggests that Jersey Mikes is committed to providing franchisees with tools to enhance efficiency and customer experience.
It's important to note that this value represents the historical cost of the software and not necessarily its current market value or future potential. Additionally, the figure does not indicate the effectiveness or user satisfaction with the software. A prospective franchisee should inquire about the specific software included in this valuation, its functionality, and its impact on franchise profitability.