What were the total operating expenses for Jersey Mikes in 2022?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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| TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT | $1,045,612,386 | $ 287,369,050 |
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023, AND 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| REVENUES: | |||
| Continual service fees and other income | $ 610,469,859 | $ 525,522,201 | $ 450,179,052 |
| Company-owned restaurant and product revenue | 38,643,884 | 31,452,056 | 23,134,342 |
| Franchise fees | 3,667,988 | 3,807,211 | 3,911,016 |
| Total revenues | 652,781,731 | 560,781,468 | 477,224,410 |
| OPERATING EXPENSES: | |||
| Selling, advertising, general, and administrative | 579,804,320 | 479,869,868 | 398,651,241 |
| Company-owned restaurant expenses | 29,520,802 | 23,734,002 | 17,859,781 |
| Total operating expenses | 609,325,122 | 503,603,870 | 416,511,022 |
| INCOME FROM OPERATIONS | 43,456,609 | 57,177,598 | 60,713,388 |
| OTHER EXPENSES: | |||
| Interest expense—net (including interest | |||
| income of $4,888,537, $5,596,531, and $1,614,477 | |||
| in 2024, 2023, and 2022, respectively) | 38,287,776 | 35,333,437 | 39,581,894 |
| Other (income) expenses—net | (247,048) | (159,476) | 1,154,779 |
| Other expenses—net | 38,040,728 | 35,173,961 | 40,736,673 |
| INCOME BEFORE PROVISION FOR STATE INCOME TAXES | 5,415,881 | 22,003,637 | 19,976,715 |
| PROVISION FOR STATE INCOME TAXES | 376,300 | 747,000 | 450,000 |
| NET INC |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the total operating expenses for the company in 2022 were $416,511,022. These expenses include $398,651,241 in selling, advertising, general, and administrative costs, and $17,859,781 in company-owned restaurant expenses.
Understanding the components of these operating expenses is crucial for potential franchisees. Selling, advertising, general, and administrative expenses cover a broad range of costs associated with running the Jersey Mikes franchise system. Company-owned restaurant expenses reflect the direct costs of operating restaurants owned by the parent company, which can provide insights into the operational costs franchisees might expect.
It's important to note that these figures represent the consolidated expenses of Jersey Mike's Franchise Systems, LLC, and its subsidiaries. Individual franchise locations will have their own operating expenses, which may vary based on factors such as location, sales volume, and management practices. Prospective franchisees should carefully review their own projected expenses and compare them to industry benchmarks to assess the financial viability of their investment.
While the FDD provides a high-level overview of operating expenses, franchisees should seek further clarification from Jersey Mikes regarding specific expense categories and how they are allocated. This will help them develop a more accurate financial model for their franchise and make informed decisions about their investment.