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What was the amount of distributions to members for Carls as of January 31, 2022?

Carls Franchise · 2024 FDD

Answer from 2024 FDD Document

Fiscal 2024 Fiscal 2023
Revenue:
Company-operated restaurants $ 368,842 $ 354,253
Franchised restaurants and other 292,713 290,831
Total revenue 661,555 645,084
Operating costs and expenses:
Company-operated restaurants:
Food and packaging 97,879 98,441
Payroll and other employee benefits 122,640 113,363
Occupancy and other 104,616 100,143
Total company-operated restaurants 325,135 311,947
Franchised restaurants and other 93,626 91,006
Advertising 20,726 19,276
General and administrative 47,953 55,948
Facility action charges, net 2,183 3,589
Total operating costs and expenses 489,623 481,766
Operating income 171,932 163,318
Interest expense (61,863) (62,752)
Other income, net 4,790 2,057
Income before income taxes 114,859 102,623
Income tax expense 5,914 4,826
Net income $ 108,945 $ 97,797

**THE CKE SECURITIZATION ENTITIES COMBINE

Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)

What This Means (2024 FDD)

According to Carls's 2024 Franchise Disclosure Document, the distributions to members as of January 31, 2022, were $(139,428). This figure represents the amount of money distributed from the CKE Securitization Entities to its members during that fiscal year.

For a prospective franchisee, understanding these distributions is crucial as it provides insight into how Carls manages its finances and shares profits with its members. A high distribution amount could indicate strong profitability, but it's essential to consider this figure in conjunction with other financial metrics such as capital contributions and net income to get a comprehensive view.

It's also important to note that these figures pertain to the CKE Securitization Entities, which were formed in connection with a financing transaction. Therefore, the distributions to members reflect the financial activities within this specific structure and may not directly represent the profitability of individual Carls franchise locations. Franchisees should inquire about how their franchise fees and royalties contribute to these distributions and how the overall financial health of the CKE Securitization Entities impacts their franchise operations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.