What was the weighted-average discount rate for Jersey Mikes in 2023?

According to Jersey Mike's 2025 Franchise Disclosure Document, the weighted-average discount rate in 2023 was 3.59%. This figure is relevant in the context of lease agreements, as it is often used to calculate the present value of future lease payments. The weighted-average discount rate reflects the average rate used across all of Jersey Mike's lease agreements to account for the time value of money.

For a prospective franchisee, understanding the discount rate is crucial because it affects how lease liabilities are valued on the franchisee's financial statements. A higher discount rate would result in a lower present value of lease liabilities, while a lower rate would increase the present value. This can impact a franchisee's perceived financial health and ability to secure financing.

It's important to note that this discount rate is an average across all Jersey Mike's locations and may not reflect the specific rate a new franchisee will encounter. The actual discount rate for a new location will depend on factors such as the franchisee's creditworthiness, the specific terms of the lease agreement, and prevailing market conditions at the time the lease is negotiated. Therefore, franchisees should carefully review their lease agreements and consult with financial advisors to understand the implications of the discount rate on their specific situation.