What was the net change in the number of Carls restaurants in Arizona from the start of 2022 to the end of 2024?
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 |
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 separate tables showing information about the number of restaurants in Arizona. One table reflects a net increase of 3 restaurants in Arizona from the start of 2022 to the end of 2024, while the other shows no change. It is important to note that the fiscal year for these numbers runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year.
Specifically, one table shows that Carls had 70 restaurants in Arizona at the start of 2022 and 73 restaurants at the end of 2024. During this time, 3 restaurants opened, and 1 non-renewal occurred in 2022. The other table shows that Carls had 14 restaurants in Arizona at the start of 2022 and 14 restaurants at the end of 2024.
A prospective franchisee should seek clarification from Carls regarding these discrepancies to understand the composition of each list and the overall growth or decline of the franchise in Arizona. Understanding the reasons behind any closures or non-renewals is also crucial for assessing the health and stability of the Carls brand in the region.