As of what date were the combined consolidated balance sheets for the CKE Securitization Entities (related to Carls) prepared?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Attached to this disclosure document as Exhibit J are the audited combined consolidated financial statements of the Securitization Entities (Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC and Hardee's Funding LLC), which comprise (1) the combined consolidated balance sheets as of January 29, 2024 and January 30, 2023, and the related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, and the related notes to the combined consolidated financial statements; and (2) the combined consolidated balance sheets as of January 30, 2023 and January 31, 2022, and the related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, and the related notes to the combined consolidated financial statements. Each of the CKE Securitization Entities (other than CJR) has agreed absolutely and unconditionally to guarantee to assume our duties and obligations under the franchise agreements entered into by us, should we become unable to
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the audited combined consolidated balance sheets for the CKE Securitization Entities were prepared as of January 29, 2024, and January 30, 2023. These financial statements also include related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, along with notes to the combined consolidated financial statements.
These financial statements offer prospective Carls franchisees insight into the financial health and performance of the CKE Securitization Entities, which include Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC, and Hardee's Funding LLC. These entities play a crucial role, as they guarantee the obligations of Carls under the franchise agreements.
The inclusion of balance sheets for two consecutive years allows for a comparative analysis, helping potential franchisees identify trends and assess the financial stability of the entities backing the Carls franchise. Reviewing these statements, along with the auditor's report, is a standard part of due diligence for anyone considering investing in a franchise.