What was the total amount Jersey Mikes spent on the acquisition of property and equipment in 2023?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | 9 96,835 | 8 30,614 | ||
| Disposition of property and equipment | 219,102 | 1 30,516 | - | ||
| 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 | 3 15,566 | (966,117) | ||
| Accounts payable, accrued expenses, and other liabilities | 20,728,101 | 25,129,334 | 8,933,353 | ||
| Unearned franchise fees | (1,430,944) | 6 20,158 | ( 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 | 7 50,000,000 | - | - | ||
| 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 | 7 04,376,872 | 33,190,229 | 1,810,248 | ||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | |||||
| Beginning of year | 139,028,486 | 105,838,257 | 104,028,009 | ||
| End of year | $ 843,405,358 | $ 1 39,028,486 | $ 1 05,838,257 |
Source: Item 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the company's acquisition of property and equipment in 2023 totaled $3,083,446. This figure reflects the company's investments in its physical assets during that year.
For a prospective franchisee, this information provides insight into the capital expenditure patterns of Jersey Mike's. While this number reflects the company's overall spending, it does not directly indicate the investment required by an individual franchisee to set up their own location. Franchisees should focus on Item 7 of the FDD, which outlines the estimated initial investment for a new franchise unit.
It's important to note that the acquisition of property and equipment is a standard business activity, and the amount spent can vary from year to year based on the company's strategic initiatives and growth plans. Franchisees should consider this information in conjunction with other financial data provided in the FDD to gain a comprehensive understanding of the financial health and investment activities of Jersey Mike's.