What was the net change in the number of company-operated Carls restaurants during 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 | 0 | 0 | 0 | 0 | 0 | 4 | |
| 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | |
| AZ | 2022 | 70 | 0 | 0 | 1 | 0 | 0 | 69 |
| 2023 | 69 | 1 | 0 | 0 | 0 | 0 | 70 | |
| 2024 | 70 | 3 | 0 | 0 | 0 | 0 | 73 | |
| CA | 2022 | 628 | 2 | 0 |
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 distinct tables showing the status of company-operated restaurants. One table reflects the status of company-operated restaurants in California, while the other reflects the status of company-operated 'Dual Concept' restaurants.
In 2022, the net change in the number of company-operated Carls restaurants in California was zero, with 48 restaurants at the start and end of the year. For company-operated Dual Concept restaurants, the net change in 2022 was -5, with 5 restaurants at the start of the year and 0 at the end of the year.
These figures indicate that while the number of company-operated restaurants remained stable in California, the Dual Concept restaurants experienced a decrease. A prospective franchisee should inquire about the reasons for this difference and the overall strategy for company-operated versus franchised locations.