What was the depreciation expense for Monicals Pizza in 2023?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the depreciation expense for the years ending December 31, 2023, was $1,165,083, while in 2022, it was $1,177,751. This indicates a slight decrease in depreciation expenses from 2022 to 2023. Depreciation is a non-cash expense that reflects the reduction in value of Monicals Pizza's assets over time.

For a prospective franchisee, understanding depreciation expenses is crucial as it impacts the overall profitability and financial health of the business. Higher depreciation expenses can reduce taxable income, but they also reflect the capital investments required to maintain and operate the Monicals Pizza restaurant. Franchisees should consider the age and condition of the assets they are acquiring or leasing, as this can affect future depreciation expenses.

It's important to note that depreciation expenses can vary depending on the accounting methods used and the types of assets involved. Franchisees should consult with a financial advisor to fully understand the implications of depreciation on their specific Monicals Pizza franchise and how it affects their financial performance. Reviewing these figures in the context of the full financial statements will provide a more complete picture of the company's financial situation.