What was the total amount of cash used in investing activities for Jersey Mikes in 2024?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ALANCE—December 31, 2024 | $ 40,000 | $ (25,662) | $ (857,931,035) | $ - | $ (857,916,697) |
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023, AND 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net income | $ 5,039,581 | $ 21,256,637 | $ 19,526,715 |
| Adjustments to reconcile net income to cash | |||
| provided by operating activities: | |||
| Depreciation and amortization | 10,489,830 | 10,034,941 | 8,982,159 |
| Amortization of deferred financing costs | 4,152,956 | 4,081,451 | 4,081,452 |
| Amortization of right of use asset | 846,602 | 996,835 | 830,614 |
| Disposition of property and equipment | 219,102 | 130,516 | - |
| Changes in operating assets and liabilities: | |||
| Accounts receivable—net | (6,553,597) | 4,502,559 | (10,218,817) |
| Prepaid expenses and other assets | 3,518,275 | 315,566 | (966,117) |
| Accounts payable, accrued expenses, and other liabilities | 20,728,101 | 25,129,334 | 8,933,353 |
| Unearned franchise fees | (1,430,944) | 620,158 | (17,891) |
| Deferred revenue | 814,961 | - | - |
| Net cash provided by operating activities | 37,824,867 | 67,067,997 | 31,151,468 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Acquisition of property and equipment | (46,362,832) | (3,083,446) | (2,760,058) |
| Acquisition of intangible assets | (7,976,497) | (4,915,059) | (9,014,486) |
| Notes receivable—net | (2,617,910) | (228,842) | 2,522,637 |
| Due from unconsolidated affiliates—net | (3,540,894) | (4,622,250) | 1,726,844 |
| Net cash used in investing activities | (60,498,133) | (12,849,597) | (7,525,063) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Proceeds from issuance of securitization debt | 750,000,000 | - | - |
| Payments on securitization debt | - | - | (6,250,000) |
| Proceeds from borrowings on notes payable | 31,000,000 | - | - |
| Payments on notes payable | (2,985,851) | (2,853,856) | (2,727,692) |
| Debt issuance costs | (19,356,976) | - | - |
| Stockholder's distribution—net | (31,581,373) | (18,174,315) | (12,838,465) |
| Net cash provided by (used in) financing activities | 727,075,800 | (21,028,171) | (21,816,157) |
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH, | |||
| CASH EQUIVALENTS, AND RESTRICTED CASH | (25,662) | - | - |
| NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the net cash used in investing activities for the company in 2024 was $60,498,133. This figure represents the total cash outflow related to investments made by Jersey Mike's during that year.
Specifically, this amount includes several components: $46,362,832 for the acquisition of property and equipment, $7,976,497 for the acquisition of intangible assets, $2,617,910 related to notes receivable, and $3,540,894 due from unconsolidated affiliates. These subtractions from cash flow indicate Jersey Mike's invested heavily in its infrastructure, brand, and related businesses during 2024.
For a prospective franchisee, this information provides insight into how Jersey Mike's manages its finances and invests in its growth. A high level of investment in property, equipment, and intangible assets could suggest that Jersey Mike's is committed to improving its operations and strengthening its brand, which could benefit franchisees in the long term. However, it is important for potential franchisees to consider these figures in the context of Jersey Mike's overall financial performance and strategic goals.