As of July 7, 2022, what services has Carls ceased providing to its master franchisee in Russia?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
As of July 7, 2022, we ceased providing any and all services to our master franchisee for the country of Russia. Our master franchisee has one franchised and sixteen subfranchised restaurants in Russia. Additionally, we have ceased collecting any royalties or fees of any type from the operation of these locations and do not approve or authorize additional locations.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, effective July 7, 2022, Carls ceased providing all services to its master franchisee in Russia. At that time, the master franchisee operated one franchised and sixteen subfranchised restaurants in Russia.
In addition to ceasing all services, Carls also stopped collecting royalties or fees from these locations. Furthermore, Carls no longer approves or authorizes the opening of any additional locations in Russia.
This indicates a complete operational separation between Carls and its Russian master franchisee due to circumstances that are not specified in the excerpt. Prospective franchisees should be aware that international events can impact franchise operations and relationships.