What entities are included in the Combined Consolidated Financial Statements for Carls Jr.?
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, the Combined Consolidated Financial Statements include the combined accounts of Carl's Jr. SPV Guarantor LLC and its consolidated subsidiaries, which are Carl's Jr. Funding LLC and Carl's Jr. Restaurants LLC. Additionally, the statements include Hardee's SPV Guarantor LLC and its consolidated subsidiaries, Hardee's Funding LLC and Hardee's Restaurants LLC, which are collectively referred to as the "CKE Securitization Entities".
These entities are all limited liability companies established in Delaware on January 30, 2013. They are special-purpose, bankruptcy-remote entities that hold the restaurant businesses, franchising assets, real estate, and other productive assets of CKE Restaurants and its subsidiaries. CKE Restaurants manages and services the assets and provides franchising, marketing, real estate, intellectual property, and operating and reporting services on behalf of these CKE Securitization Entities.
The FDD clarifies that references to "we", "us", "our" and the "Company" in the financial statements may refer to any or all of the CKE Securitization Entities but do not refer to CKE or CKE Restaurants. This distinction is important for prospective franchisees to understand which entities' financial performance is reflected in the combined consolidated statements.