As of January 31, 2024, who is the sole stockholder of CKE, which is relevant to the Carls franchise?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
CKE Holdings LP, a limited partnership (the "Partnership") that was formed by Roark Capital Management, LLC ("Roark") and certain members of our senior management team and Board of Directors in December 2013, is CKE's sole stockholder as of January 31, 2024 and 2023. The Limited Partnership Agreement, as amended ("Limited Partnership Agreement"), allows for the issuance of profit sharing interests ("Units") in the Partnership in the form of "Class B" and "Class C" Units. The Units provide the holders a profit sharing interest in the Partnership as defined in the partnership agreement and the individual grant agreements. There are no income tax benefits associated with any of the Class B Units or Class C Units.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, as of January 31, 2024, CKE Holdings LP is the sole stockholder of CKE. CKE Holdings LP is a limited partnership that was formed by Roark Capital Management, LLC, and certain members of the senior management team and Board of Directors in December 2013.
This means that Roark Capital Management, along with some of Carls's senior management and board members, ultimately controls CKE. This is relevant to prospective franchisees because it provides insight into the ownership structure and potential influences on the Carls franchise system.
The limited partnership agreement allows for the issuance of profit sharing interests in the form of "Class B" and "Class C" Units, which provide holders a profit sharing interest in the Partnership. These units vest over time or upon achieving certain financial or investment targets. This structure incentivizes the management team and board members, aligning their interests with the overall performance of CKE and, by extension, the Carls franchise.