What was the depreciation expense for Monicals Pizza for the year ended December 31, 2023?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the depreciation expense for the years ending December 31, 2023, was $1,165,083. This figure reflects the accounting recognition of the reduction in value of Monicals Pizza's assets due to wear and tear, obsolescence, or other factors. Depreciation is a non-cash expense that impacts the company's net income.

For a prospective franchisee, understanding the depreciation expense is crucial as it provides insight into the capital expenditures and asset management strategies of Monicals Pizza. Higher depreciation expenses might indicate significant investments in equipment and property, which could be a positive sign of a well-established operation. However, it also implies ongoing costs to maintain or replace these assets over time.

It's also worth noting that the depreciation expense for the year ended December 31, 2022, was $1,177,751. The slight decrease in depreciation expense from 2022 to 2023 could be due to various factors, such as changes in asset base, depreciation methods, or asset lifecycles. Franchisees should consider these trends when evaluating the financial health and stability of Monicals Pizza.

Reviewing depreciation expenses over several years, as presented in the FDD, helps potential franchisees assess the long-term capital needs and potential profitability of a Monicals Pizza franchise. Understanding these financial details is essential for making informed investment decisions.