How many Carls restaurants in California were closed in 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
to New Owners (Other than to CJR, Its Predecessor or Their Affiliates) For Fiscal Years 2022-2024(1) (2) ***
| State | Year | Number of Transfers | |---|---|---| | CA | 2022 | 0 | | | 2023 | 1 | | | 2024 | 0 | | UT | 2022 | 0 | | | 2023 | 1 | | | 2024 | 0 | | TOTAL | 2022 | 0 | | | 2023 | 2 | | | 2024 | 0 | *The Restaurants included in this table are also included in the preceding table.
Table No. 3 Status of Franchised Restaurants For Fiscal Years 2022-2024(1) (2)
| State | Year | Restaurants at Start of the Year | Restaurants Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations – Other Reasons | Restaurants at End of the Year |
|---|---|---|---|---|---|---|---|---|
| AK | 2022 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| 2023 | 4 |
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 are two separate tables that outline restaurant closures in California during 2022. One table reflects that zero restaurants were closed in 2022. However, another table indicates that 31 restaurants ceased operations for other reasons.
It is important to note that the first table reflects that there were 250 restaurants at the start of 2022 and 219 at the end of 2022. The second table reflects 628 restaurants at the start of 2022 and 614 at the end of 2022.
Due to the discrepancy in the data, a prospective franchisee should seek clarification from Carls regarding the reasons for the differing numbers and the specific circumstances surrounding the restaurant closures in California during 2022. Understanding the reasons behind closures can provide valuable insights into the health and stability of the franchise system in that region.