What was the total value of software developed for external use by Jersey Mikes in 2023?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
result of the Company's involvement with these variable interest entities is the amount advanced to the entities as of the reporting date.
8. INTANGIBLE ASSETS
Intangible assets consist of the following as of at December 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Area service agreements (a) | $ 139,417 | $ 139,417 |
| Trademarks (b) | 60,616 | 60,616 |
| Software developed for external use (c) | 37,638,956 | 34,253,212 |
| Website de |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the total value of software developed for external use was $34,253,212 in 2023. This figure represents the capitalized costs associated with software that Jersey Mike's developed for use outside of its internal operations. These costs are treated as intangible assets on Jersey Mike's balance sheet.
For a prospective franchisee, this indicates that Jersey Mike's invests significantly in technology for external applications, which could include customer-facing apps, online ordering systems, or other digital platforms. These assets are amortized over a useful life of 5 years, meaning that the cost is gradually expensed over that period.
The fact that Jersey Mike's capitalizes these software development costs suggests that they expect to derive long-term economic benefits from these assets. This can be a positive sign, as it indicates a commitment to innovation and technology that could enhance the customer experience and improve operational efficiency. However, franchisees should also be aware that technology investments can carry risks, such as the need for ongoing maintenance and updates, and the potential for obsolescence if the technology becomes outdated.