As of January 31, 2024, how many total Carls restaurants were company-operated?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| ASSETS | Carl's Jr. Restaurants LLC | Carl's Jr. Funding LLC | Carl's Jr. SPV Guarantor LLC | Hardee's Restaurants LLC | Hardee's Funding LLC | Hardee's SPV Guarantor LLC | Eliminations | The CKE Securitization Entities |
|---|---|---|---|---|---|---|---|---|
| Current assets: | ||||||||
| Cash and cash equivalents $ | 1,627 $ | 1,161 $ | — $ | 3,555 $ | 977 $ | — $ | — $ | 7,320 |
| Cash and cash equivalents - restricted | — | 16,053 | — | — | — | — | — | 16,053 |
| Accounts receivable, net | 10,663 | — | — | 10,036 | — | — | — | 20,699 |
| Due from affiliates | 6,860 | 20,696 | — | 52,060 | 215 | — | (79,292) | 539 |
| Inventories | 562 | — | — | 2,411 | — | — | — | 2,973 |
| Prepaid expenses | — | 16 | — | 137 | 20 | — | — | 173 |
| Other current assets | 83 | — | — | — | — | — | — | 83 |
| Total current assets | 19,795 | 37,926 | — | 68,199 | 1,212 | — | (79,292) | 47,840 |
| Property and equipment, net | 83,427 | — | — | 266,461 | — | — | — | 349,888 |
| Operating lease assets | 317,666 | — | — | 93,790 | — | — | — | 411,456 |
| Intangible assets, net | 384,915 | — | — | 408,115 | — | — | — | 793,030 |
| Other assets, net | 13,000 | — | — | 15,810 | — | — | — | 28,810 |
| Total assets $ | 818,803 $ | 37,926 $ | — $ | 852,375 $ | 1,212 $ | — $ | (79,292) $ | 1,631,024 |
| LIABILITIES AND MEMBERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt $ | — $ | 5,900 $ | — $ | — $ | 5,900 $ | — $ | — $ | 11,800 |
| Current portion of finance leases | 627 | — | — | 641 | — | — | — | 1,268 |
| Current portion of operating leases | 59,930 | — | — | 16,312 | — | — | — | 76,242 |
| Accounts payable | 2,849 | — | — | 3,358 | — | — | — | 6,207 |
| Due to affiliates | (564) | 55,477 | — | 3,779 | 25,677 | — | (79,292) | 5,077 |
| Other current liabilities | 10,931 | 2,982 | — | 18,435 | 2,968 | — | — | 35,316 |
| Total current liabilities | 73,773 | 64,359 | — | 42,525 | 34,545 | — | (79,292) | 135,910 |
| Long-term debt, less current portion | — | 558,203 | — | — | 558,202 | — | — | 1,116,405 |
| Finance leases, less current portion | 5,269 | — | — | 9,159 | — | — | — | 14,428 |
| Operating leases, less current portion | 269,290 | — | — | 80,987 | — | — | — | 350,277 |
| Other long-term liabilities | 68,431 | (1) | — | 194,080 | — | — | — | 262,510 |
| Total liabilities | 416,763 | 622,561 | — | 326,751 | 592,747 | — | (79,292) | 1,879,530 |
| Members' equity (deficit): | ||||||||
| Members' equity (deficit) | 402,040 | (584,635) | — | 525,624 | (591,535) | — | — | (248,506) |
| Total liabilities and members' deficit $ | 818,803 $ | 37,926 $ | — $ | 852,375 $ | 1,212 $ | — $ | (79,292) $ | 1,631,024 |
**THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING STATEMENT OF OPERATIONS
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the financial statement includes revenue figures for company-operated restaurants. Specifically, for Carl's Jr. Restaurants LLC, the revenue from company-operated restaurants is listed as $112,928. For Hardee's Restaurants LLC, the revenue from company-operated restaurants is $255,914. The combined revenue from company-operated restaurants for both entities totals $368,842.
However, the FDD does not explicitly state the number of company-operated restaurants. Instead, it provides financial data related to their revenue and expenses. To determine the number of company-operated Carls restaurants, one would need to correlate this revenue data with the average revenue per restaurant, which is not provided in this excerpt.
A prospective franchisee should ask Carls for the total number of company-operated restaurants to better understand the scale of corporate operations and compare the financial performance of company-operated versus franchised locations. This information is crucial for assessing the potential profitability and operational efficiency of a Carls franchise.