What was the net change in the number of company-operated Carls dual concept restaurants in 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, in fiscal year 2022, the net change in the number of company-operated dual concept restaurants was -5. This means that Carls had a decrease of 5 company-operated dual concept restaurants during that year. At the start of 2022, there were 5 company-operated dual concept restaurants, and by the end of the year, there were 0.
This information is crucial for potential franchisees as it provides insight into the performance and changes within Carls's company-operated stores, specifically those with a dual concept. A decrease in company-operated stores could signal various factors, such as strategic shifts, financial performance issues, or a greater focus on franchised locations.
Prospective franchisees should further investigate the reasons behind this net change to understand the broader context. Understanding why Carls closed or converted these company-operated dual concept restaurants can help a franchisee assess the stability and strategic direction of the franchise system. It is important to consider this data when evaluating the overall health and potential risks associated with investing in a Carls franchise.