What was the reported value of gift cards redeemable at Monicals Pizza as of January 1, 2023?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the value of gift cards redeemable was tracked in the company's consolidated financial statements. As of January 1, 2023, the reported value of outstanding gift cards redeemable at Monicals Pizza was $732,343. This figure represents the total liability Monicals Pizza had for unredeemed gift cards at that specific point in time.

For a prospective franchisee, this number provides insight into the financial obligations Monicals Pizza carries related to its gift card program. It demonstrates the popularity and usage of gift cards among Monicals Pizza customers. The company treats unredeemed gift cards as a liability on its balance sheets, which is a standard accounting practice, until they are redeemed or an estimated breakage amount is applied.

It's important to note that Monicals Pizza also calculates an allowance for unredeemed gift cards, estimating an annual breakage amount. This breakage, calculated as 6% of total activations over the past five years, reduces the liability associated with outstanding gift cards. For the years ending December 31, 2024 and 2023, the breakage amounts were $35,133 and $33,216, respectively. This indicates that Monicals Pizza proactively manages its gift card liabilities by accounting for the portion of gift cards that are not expected to be redeemed.