What was the amount of distributions to members for Carls as of January 31, 2022?
Carls Franchise · 2024 FDDAnswer 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.