How many Carls restaurants in California were reacquired from franchisees in 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | | WA | 2022 | 9 | 0 | 0 | 0 | 0 | 0 | 9 | | | 2023 | 9 | 0 | 0 | 0 | 0 | 0 | 9 | | | 2024 | 9 | 0 | 0 | 0 | 0 | 0 | 9 | | TOTAL | 2022 | 326 | 0 | 0 | 0 | 0 | 56 | 270 | | (14) | | | | | | | | | | | 2023 | 270 | 0 | 0 | 0 | 0 | 1 | 269 | | | 2024 | 269 | 0 | 0 | 0 | 0 | 7 | 262 | The Restaurants included in this table are also included in the previous table.
Table No. 4 Status of Company-Operated Restaurants For Fiscal Years 2022-2024(1) (2)
| State | Year | Restaurants at Start of the Year | Restaurants Opened | Restaurants Reacquired from Franchisees | Restaurants Closed | Restaurants Sold to Franchisees | Restaurants at End of the Year |
|---|---|---|---|---|---|---|---|
| CA | 2022 | 48 | 0 | 0 | 0 | 0 | 48 |
| 2023 | 48 | 1 | 0 | 0 | 0 | 49 | |
| 2024 | 49 | 0 | 0 | 0 | 0 | 49 | |
| TOTAL | 2022 | 48 | 0 | 0 | 0 | 0 | 48 |
| 2023 | 48 | 1 | 0 | 0 | 0 | 49 | |
| 2024 | 49 | 0 | 0 | 0 | 0 | 49 |
Status of Company-Operated Dual Concept Restaurants For Fiscal Years 2022-2024(1) (2) *
| State | Year | Restaurants at Start of the Year | Restaurants Opened | Restaurants Reacquired From Franchisees | Restaurants Closed | Restaurants Sold to Franchisees | Restaurants at End of the Year |
|---|---|---|---|---|---|---|---|
| CA | 2022 |
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 multiple instances of franchise data reported for California. Based on the provided tables, the number of restaurants reacquired from franchisees in California during 2023 was zero across all reported data sets.
Specifically, one table shows that in California, there were 48 restaurants at the start of 2023, one restaurant opened, and zero restaurants were reacquired from franchisees, closed, or sold to franchisees, resulting in 49 restaurants at the end of the year. Another table indicates that there were 219 restaurants at the start of 2023, zero restaurants opened, zero restaurants were terminated, zero restaurants had non-renewals, zero restaurants were reacquired by the franchisor, one restaurant ceased operations for other reasons, resulting in 218 restaurants at the end of the year. A third table shows that there were 614 restaurants at the start of 2023, one restaurant opened, zero restaurants were terminated, zero restaurants had non-renewals, zero restaurants were reacquired by the franchisor, two restaurants ceased operations for other reasons, resulting in 613 restaurants at the end of the year.
This data point is important for prospective franchisees as it can indicate the stability of the franchise system and the relationship between Carls and its franchisees. A high number of reacquired restaurants could suggest potential issues with franchisee success or support, while a low number, as is the case here, may indicate a healthy franchise system. It is important to note that the different tables may represent different franchise offerings or reporting segments within the Carls system.
Prospective franchisees should investigate the reasons behind any reacquired restaurants in previous years (if any) to fully understand the dynamics of the Carls franchise network in California. Understanding the factors that contribute to restaurant closures or re acquisitions can help franchisees assess their own risk and preparedness for operating a Carls franchise.