How many franchised Carls restaurants were operating at the start of 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Restaurant Type | Year | Restaurants at Start of the Year | Restaurants at End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 326 | 270 | -56 |
| 2023 | 270 | 269 | -1 | |
| 2024 | 269 | 262 | -7 | |
| Company- | 2022 | 5 | 0 | -5 |
| Operated | ||||
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 331 | 270 | -61 |
| 2023 | 270 | 269 | -1 | |
| 2024 | 269 | 262 | -7 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–79)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, there were two different totals for the number of franchised restaurants at the start of 2022. One table indicates that there were 326 franchised restaurants at the start of 2022, while another table shows 1,031 franchised restaurants at the start of 2022. These discrepancies may be due to the inclusion of dual-concept restaurants or different reporting methods.
It is important to note that the numbers provided in the FDD are as of the end of Carls's fiscal year, which runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year. This means that the numbers reported for 2022 reflect the status of the restaurants as of late January 2022.
A prospective franchisee should seek clarification from Carls regarding the discrepancy in the number of franchised restaurants reported at the start of 2022. Understanding the factors contributing to these differences is essential for making an informed investment decision. Specifically, a franchisee should inquire about what constitutes a 'dual concept restaurant' and how those locations are counted in each table.