What was the lowest EBITDAR reported for a Carls location in Group 1 during FY24?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
t incentives offered by us at the time the franchised restaurant opened for business. To provide consistent information and analysis, we adjusted all royalties to reflect royalties calculated at 4% of Revenue (Gross Sales), the same royalty rate new franchisees will be required to pay under our current franchise offering.
Below, please find the median, lowest, and highest, and number and percentage of restaurants that attained or exceeded the average revenue numbers presented in Table 3 above.
| Values | Group 1 | Group 2 | Group 3 | All Locations |
|---|---|---|---|---|
| Median FY24 Revenue | $1,845,870 | $1,402,770 | $1,031,307 | $1,462,863 |
| Lowest FY24 Reven |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 66–72)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the lowest EBITDAR for a Group 1 location was $136,380 during FY24. This data is based on information from franchised Carl's Jr. freestanding restaurants.
It's important to understand what EBITDAR represents. The FDD defines Restaurant EBITDAR as Restaurant Level Earnings Before Interest, Taxes, Depreciation, Amortization, Asset Retirement and Rent. It's a measure of a restaurant's operating profitability before taking into account certain financial and non-cash expenses. However, it does not include common area maintenance charges, general and administrative expenses above the restaurant level, franchise royalties, and other miscellaneous expenses a franchisee may incur.
For a prospective franchisee, this figure provides a benchmark for the lowest level of operating profit achieved by the top-performing group of restaurants. While it's a positive indicator, franchisees should consider all other expenses not included in EBITDAR to estimate their potential net profit. Reviewing the complete financial performance representations, including revenue, costs, and other expense categories, is crucial for a comprehensive understanding.