How many Carls franchise transfers occurred in California during 2023?

According to Carls's 2024 Franchise Disclosure Document, there were a total of 81 franchise transfers in California during 2023, as detailed in Item 20. This number reflects transfers of existing Carls franchises to new owners within the California market. This data point is crucial for potential franchisees to understand the dynamics of franchise ownership changes within the system.

The high number of transfers in California during 2023 could indicate various factors, such as franchisees retiring, selling for personal reasons, or potentially performance-related issues leading to a transfer. It is important to note that Carls's fiscal year runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year.

Prospective franchisees should investigate the reasons behind these transfers to assess the health and stability of the Carls franchise network in California. Understanding the context behind these transfers can provide valuable insights into the challenges and opportunities within the Carls franchise system. Reviewing Exhibit H, which lists franchisees who have ceased business, including transfers, might also provide additional context.