What accounting principles are the Combined Consolidated Financial Statements for Carls Jr. prepared in accordance with?

According to the 2024 FDD, the combined consolidated financial statements for Carl's Jr. SPV Guarantor LLC and its subsidiaries, and Hardee's SPV Guarantor LLC and its subsidiaries are prepared in accordance with U.S. generally accepted accounting principles. This means that Carl's Jr. adheres to a standardized set of accounting rules, principles, and procedures generally accepted in the United States. These principles ensure that the financial statements are presented fairly and consistently, allowing for meaningful comparisons across different reporting periods and with other companies.

For a prospective franchisee, this is important because it provides a level of assurance that the financial information presented by Carl's Jr. is reliable and comparable. The use of U.S. generally accepted accounting principles helps to ensure transparency and consistency in financial reporting, which is crucial for making informed investment decisions. Franchisees can review these statements with confidence, knowing they follow established standards.

Furthermore, the FDD includes an Independent Auditors' Report from KPMG LLP, indicating that the financial statements have been audited. This audit provides an additional layer of scrutiny and validation, as the auditors express an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Carl's Jr. in accordance with U.S. generally accepted accounting principles. This external audit enhances the credibility of the financial statements and provides further assurance to potential franchisees.