Does the affiliation of Schlotzsky's with GoTo Foods in 2006 have any impact on the franchising terms or obligations for a Carls franchise?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
of business.
Affiliated Franchise Programs. Through control with private equity funds managed by Roark Capital Management, LLC, we are affiliated with the following franchise programs ("Affiliated Programs"). None of these affiliates operates a Carl's Jr. franchise.
GoTo Foods Inc. ("GoTo Foods") is the indirect parent company to seven franchisors, including: Auntie Anne's Franchisor SPV LLC ("Auntie Anne's"), Carvel Franchisor SPV LLC ("Carvel"), Cinnabon Franchisor SPV LLC ("Cinnabon"), Jamba Juice Franchisor SPV LLC ("Jamba"), McAlister's Franchisor SPV LLC ("McAlister's"), Moe's Franchisor SPV LLC ("Moe's"), and Schlotzsky's Franchisor SPV LLC ("Schlotzsky's"). All seven GoTo Foods franchisors have a principal place of business at 5620 Glenridge Drive NE, Atlanta, GA 30342 and have not offered franchises in any other line of business.
Auntie Anne's franchises Auntie Anne's® shops that offer soft pretzels, lemonade, frozen drinks and related foods and beverages. In November 2010, the Auntie Anne's system became affiliated with GoTo Foods through an acquisition. Auntie Anne's predecessor began offering franchises in January 1991. As of December 31, 2023, there were 1,156 franchised and 11 affiliateowned Auntie Anne's shops in the United States and 817 franchised Auntie Anne's shops outside the United States.
Carvel franchises Carvel® ice cream shoppes and is a leading retailer of branded ice cream cakes in the United States and a producer of premium soft-serve ice cream.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–19)
What This Means (2024 FDD)
According to the 2024 FDD, the affiliation of Schlotzsky's with GoTo Foods in 2006 does not directly impact the franchising terms or obligations for a Carls franchise. The FDD mentions that GoTo Foods is the indirect parent company to several franchisors, including Schlotzsky's, Auntie Anne's, Carvel, Cinnabon, Jamba, McAlister's, and Moe's. However, the document does not state that this affiliation affects the operations or obligations of a Carls franchisee.
While GoTo Foods' affiliation with Schlotzsky's and other brands doesn't create direct obligations for a Carls franchisee, it does indicate the broader corporate structure and potential resource pool behind the Carls brand. Roark Capital Management, LLC manages private equity funds that have control with these affiliated franchise programs. This could mean potential synergies or shared resources among the brands under GoTo Foods, although this is not explicitly detailed in the FDD regarding Carls.
Prospective Carls franchisees should be aware of the overall corporate structure and affiliations, as it can provide insight into the stability and potential support network available to them. However, the FDD does not provide specific details on how the GoTo Foods affiliation impacts the day-to-day operations or financial obligations of a Carls franchise. Therefore, it would be prudent for potential franchisees to inquire further with the franchisor about any indirect impacts or benefits that may arise from this affiliation.