What was the net change in the number of franchised Carls 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 | 1031 | 1018 | -13 |
| 2023 | 1018 | 1020 | +2 | |
| 2024 | 1020 | 1014 | -6 | |
| Company- | 2022 | 48 | 48 | 0 |
| Operated | ||||
| 2023 | 48 | 49 | +1 | |
| 2024 | 49 | 49 | 0 | |
| Total Outlets | 2022 | 1079 | 1066 | -13 |
| 2023 | 1066 | 1068 | +2 | |
| 2024 | 1068 | 1063 | -5 |
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 tables showing the status of franchised restaurants. One table indicates that the net change in the number of franchised Carls restaurants in 2022 was -13. This means that 13 fewer franchised restaurants were in operation at the end of 2022 compared to the beginning of the year. The other table indicates that the net change in the number of franchised Dual Concept restaurants in 2022 was -56. This discrepancy may be due to different reporting methods or the inclusion/exclusion of certain types of restaurants in each table.
It is important to note that the numbers provided in the FDD are as of Carls's fiscal year end, which runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year. This means that the 2022 data reflects changes occurring between late January 2022 and late January 2023.
A prospective franchisee should carefully review both tables and seek clarification from Carls regarding the reasons for the differing numbers. Understanding the specific factors that contributed to the net decrease in franchised restaurants during 2022 can provide valuable insights into the health and stability of the Carls franchise system.