What was the accrued expense for profit sharing for Monicals Pizza as of December 31, 2022?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accrued expenses and other current liabilities consist of the following as of December 31: | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Payroll and vacation | $ 2,186,026 $ 1,784,330 | ||
| Real estate taxes | 513,162 | 487,485 | |
| Profit sharing | 163,267 | 97,130 | |
| Sales and use taxes | 146,567 | 115,949 | |
| Payroll taxes | 144,924 | 114,583 | |
| State replacement tax | 71,755 | 113,075 | |
| Percentage rent | 55,711 | 61,534 | |
| Other | 57,501 | 54,546 | |
| Totals | $ 3,338,913 | $ 2,828,632 |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the accrued expense for profit sharing as of December 31, 2022, was $97,130. This figure is part of the company's accrued expenses and other current liabilities. Accrued expenses represent obligations that Monicals Pizza has incurred but not yet paid. These are recorded on the company's balance sheet. Profit sharing typically refers to a plan where a portion of a company's profits is distributed to its employees.
For a prospective Monicals Pizza franchisee, understanding the franchisor's financial obligations, such as accrued profit sharing expenses, is crucial. It provides insight into the company's financial health and its commitment to employee compensation. Knowing the details of these expenses can help a franchisee assess the overall financial stability of Monicals Pizza and its ability to meet its financial obligations.
The FDD also lists the accrued expense for profit sharing as of December 31, 2023, which was $163,267. This shows an increase in profit sharing expenses from 2022 to 2023. Reviewing these figures over time can reveal trends in employee compensation and the company's profitability. It is important to note that these figures are part of the consolidated financial statements, which include Monical Pizza Corporation and its subsidiaries.
In addition to profit sharing, the accrued expenses also include items such as payroll and vacation, real estate taxes, sales and use taxes, payroll taxes, state replacement tax, percentage rent, and other expenses. These combined accrued expenses and other current liabilities totaled $2,828,632 as of December 31, 2022, and $3,338,913 as of December 31, 2023. A prospective franchisee should consider all these liabilities when evaluating the financial condition of Monicals Pizza.