When was Carl's Jr. SPV Guarantor LLC established?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
These Combined Consolidated Financial Statements include the combined accounts of Carl's Jr. SPV Guarantor LLC and its consolidated subsidiaries, consisting of Carl's Jr. Funding LLC and Carl's Jr. Restaurants LLC, and Hardee's SPV Guarantor LLC and its consolidated subsidiaries, consisting ofHardee's Funding LLC and Hardee's Restaurants LLC (collectively, the "CKE Securitization Entities"). The indirect corporate parent of Carl's Jr. SPV Guarantor LLC and Hardee's SPV Guarantor LLC is CKE Restaurants, and the indirect corporate parent of CKE Restaurants is CKE Holding Corporation ("CKE"). All of the CKE Securitization Entities are limited liability companies established on January 30, 2013 and were organized in the state of Delaware. The CKE Securitization Entities are special purpose, bankruptcy remote entities that hold substantially all of the restaurant businesses, franchising assets, real estate and other productive assets of CKE Restaurants and its subsidiaries. CKE Restaurants, together with certain other non-securitization entities, acts as the manager ("Manager") by managing and servicing the assets, performing certain franchising, marketing, real estate, intellectual property and operating and reporting services on behalf of the CKE Securitization Entities. References to "we", "us", "our" and the "Company" may relate to any or all of the CKE Securitization Entities, as may be applicable, but do not relate to CKE or CKE Restaurants.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to the 2024 FDD, Carl's Jr. SPV Guarantor LLC was established on January 30, 2013, as a limited liability company organized in the state of Delaware. This entity is part of a group known as the CKE Securitization Entities, which also includes Carl's Jr. Funding LLC and Carl's Jr. Restaurants LLC, along with similar entities for Hardee's.
These CKE Securitization Entities are designated as special purpose, bankruptcy remote entities. This means they are structured to hold the core assets of CKE Restaurants and its subsidiaries, including restaurant businesses, franchising assets, real estate, and other productive assets. The purpose of this structure is to isolate these assets, providing a level of protection in case of financial distress at the parent company level.
CKE Restaurants manages these assets on behalf of the CKE Securitization Entities, handling franchising, marketing, real estate, intellectual property, and operational services. When the FDD refers to "we," "us," or "our," it is referring to these CKE Securitization Entities rather than the parent companies, CKE or CKE Restaurants. This distinction is important for prospective franchisees to understand, as it clarifies which entity is responsible for the financial statements and related obligations.