What was the total amount of Jersey Mikes' notes payable, net of financing costs, in 2023?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
mber 31, 2024, the Company has borrowed a total of $31,000,000 and has interest-only payments at a variable interest rate of the secured overnight financing rate (SOFR), plus 2.25%.
Notes payable consisted of the following at December 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Notes payable—long term—2020 | $ 21,958,930 | $ 25,082,885 |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, the total notes payable, net of financing costs, for the company in 2023 was $28,040,599. This figure represents the net amount of short-term and long-term notes payable after deducting financing costs.
For a prospective franchisee, understanding the notes payable is crucial as it reflects the company's debt obligations. A high level of debt could indicate financial strain, while a lower level might suggest better financial health. However, it's essential to consider the context of the debt, such as its purpose and repayment terms. In Jersey Mike's case, these notes payable could be related to various aspects of their operations, including securitization transactions and general financing needs.
It is also important to note that the FDD provides a breakdown of the components of the total notes payable, including long-term and short-term notes, as well as the associated financing costs. This level of detail allows potential franchisees to gain a more comprehensive understanding of Jersey Mike's financial obligations and assess the company's ability to manage its debt effectively. Reviewing these figures in comparison to previous years and industry benchmarks can provide further insights into the company's financial stability and growth potential.