What was the estimated fair value of Carls' cash and cash equivalents in 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Indenture governing the Senior Notes includes certain covenants and restrictions that may limit CKE Restaurants' ability to declare and pay dividends. No dividends were declared and paid in fiscal 2023. During fiscal 2022, we paid a cash dividend of $105,000 to CKE Inc. During fiscal 2022, CKE Inc. made a capital contribution to CKE Restaurant Holdings, Inc. of $41 ,500.
During fiscal 2023, CKE Inc. merged with CKE Restaurants which survives the merger. As a result of the merger, all assets, liabilities and debts of CKE, Inc. transferred to CKE Restaurants. The intercompany note agreements between the entities were cancelled, and the CKE Restaurants note receivable from CKE Inc. in the amount of $441 ,866 was reclassified to accumulated deficit. In addition, $316 of cash held by CKE Inc. was consolidated into CKE Restaurants.
NOTE 13 - FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents information on our financial in
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the estimated fair value for cash and cash equivalents in 2022 was $130,508. The FDD also notes that the fair value of cash and cash equivalents approximates their carrying amounts due to the short maturity of the balances. This means the reported value closely reflects the actual market value.
In addition to general cash and cash equivalents, Carls also reports restricted cash and cash equivalents. In 2022, the restricted cash and cash equivalents totaled $16,059. These funds are held by a trustee for debt service payments on senior notes.
For a prospective franchisee, understanding these figures provides insight into Carls's financial health and how it manages its liquid assets and debt obligations. It's important to note that these figures are specific to the parent company and not necessarily indicative of an individual franchise's financial performance.