According to Carls's 2024 Franchise Disclosure Document, the net cash provided by operating activities for the fiscal year 2023 was $137,019. This figure represents the cash generated from Carls's normal business operations during that period. It's a key indicator of the company's financial health and its ability to fund ongoing expenses and investments.

To arrive at this number, Carls started with a net income of $97,797. Then, several adjustments were made to reconcile net income to net cash provided by operating activities. These adjustments included adding back non-cash expenses like depreciation and amortization ($44,580) and amortization of deferred financing costs ($3,352). Also factored in were gains or losses on disposal of property and equipment ($512), provisions for losses ($318), and changes in operating assets and liabilities, such as receivables, inventories, and payables.

The net cash provided by operating activities is a critical metric for prospective franchisees to consider. It demonstrates Carls's ability to generate cash from its core business activities, which can impact its capacity to support franchisees and invest in the brand's growth. A consistently positive and growing net cash flow from operations generally indicates a stable and healthy franchise system.