What was the carrying amount of the Series 2020-1 Class A-2 Notes for Carls in 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
4 | 108 | | Total other long-term liabilities | $ | 250,801 | $ 262,510 |
NOTE 12 — MEMBERS' DEFICIT
During fiscal 2024 and 2023, the CKE Securitization Entities received capital contributions of $35,679 and $45,394, respectively, consisting principally of property and equipment and assets associated with the CKE Restaurants Acquisition (see Note 5). During fiscal 2024 and 2023, the CKE Securitization Entities paid total cash distributions of $133,746 and $139,428, respectively, to members.
NOTE 13 — FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents information on our financial instruments as of January 31, 2024 and 2023:
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Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the carrying amount of the Series 2020-1 Class A-2 Notes was $382,905. This represents the outstanding principal balance of these notes as of the end of the 2024 fiscal year. The estimated fair value of these notes at that time was $344,350.
These notes are part of Carls's overall debt structure, which includes several series of senior secured notes. These notes were issued to refinance previous debt. Understanding the nature and terms of these notes is crucial for assessing the financial health of Carls.
A prospective franchisee should consider the implications of Carls's debt on its ability to support franchisees and invest in the brand. High debt levels could potentially limit Carls's financial flexibility and its capacity to respond to changing market conditions. Therefore, it is important for potential franchisees to evaluate Carls's financial statements and consult with financial advisors to understand the risks and opportunities associated with investing in a Carls franchise.