For the Carls franchise, for which fiscal years are the combined consolidated financial statements provided?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
lding LLC | Doral, FL | | Starcorp CJ, LLC | Goodyear, AZ | | Bens Holding Group LLC | Blaine, WA | | SDC Restaurants LLC | Chula Vista, CA | | Starcorp CJ, LLC | Phoenix, AZ | | Valley Star AZ, LLC | Surprise, AZ | | 3 Brothers Plaza, LLC | Colusa, CA |
The following is a list of each current Carl's Jr. Developer that has entered into a Development Agreement but has not yet opened a Carl's Jr. Restaurant:
| 3 Brothers Plaza, LLC |
|---|
| Star Brands Hawaii, LP |
ITEM 21 FINANCIAL STATEMENTS
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
perform our duties and obligations. A copy of those guarantees are attached as part of Exhibit J to this disclosure document.
Also attached as Exhibit J are the audited consolidated financial statements for CJR's indirect corporate parent, CKE Restaurants Holdings, Inc.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to the 2024 FDD, Carls provides audited combined consolidated financial statements for two fiscal year periods. These include the combined consolidated balance sheets as of January 29, 2024, and January 30, 2023, along with the related statements of income, members' deficit, and cash flows for the fiscal years then ended. Additionally, the FDD includes combined consolidated balance sheets as of January 30, 2023, and January 31, 2022, with their corresponding statements of income, members' deficit, and cash flows for those fiscal years.
These financial statements pertain to 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. The inclusion of these statements allows prospective franchisees to review the financial health and performance of the entities most closely related to the franchise system.
In addition to the combined consolidated financial statements of the Securitization Entities, the 2024 Carls FDD includes the audited consolidated financial statements for CKE Restaurants Holdings, Inc. (CKR), the indirect corporate parent of Carl's Jr. SPV Guarantor LLC. These statements cover the same periods, providing a broader view of the financial standing of the overall corporate structure. While CKR is not a party to the franchise agreement, its financial statements are included for informational purposes, as CKR provides support and services to franchisees under a Management Agreement.