What was the total amount of notes receivable for Jersey Mikes in 2023?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
nt audit findings, and certain internal control-related matters that we identified during the audit.
March 14, 2025
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| 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 |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, the total notes receivable in 2023 was $588,418. This represents the amount of money owed to Jersey Mike's by debtors through formal promissory notes. Notes receivable are considered current assets, meaning they are expected to be converted to cash within one year.
For a prospective franchisee, understanding the notes receivable is important as it reflects part of Jersey Mike's overall financial health. A consistent or growing amount of notes receivable could indicate effective lending or financing activities by Jersey Mike's, potentially to its franchisees or other related parties. However, it also carries the risk of default, which could impact the company's cash flow if these notes are not repaid.
It is also important to note that the notes receivable balance relates to notes from unaffiliated companies with interest rates ranging from 3% to 10% per annum, maturing through October 2037, secured by the assets of the individual franchisee. This indicates that these notes are tied to loans provided to franchisees, with the franchisee's assets acting as collateral. This arrangement provides Jersey Mike's with a degree of security, but also exposes them to the financial risks associated with their franchisees' businesses.