What was the net rent income for Carls for fiscal year 2023 under SC 842?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
-------------|----|---------------------|----|----------------------|----|---------------------| | | | Company- Operated | F | ranchise & Other | | Company- Operated | F | ranchise & Other | | Fiscal: | | | | | | | | | | 2024 | $ | 731 | $ | 1,741 | $ | 15,015 | $ | 78,218 | | 2025 | | 681 | | 1,553 | | 13,850 | | 64,874 | | 2026 | | 716 | | 1,480 | | 12,586 | | 54,294 | | 2027 | | 733 | | 1,412 | | 11,655 | | 44,683 | | 2028 | | 737 | | 1,356 | | 10,497 | | 36,269 | | Thereafter | | 6,212 | | 6,395 | | 55,564 | | 107,464 | | Total m
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the net rent income for fiscal year 2023 under SC 842 was $6,661. This figure is derived from the total rent revenue of $101,301 less the total operating lease cost of $94,640. The minimum rent revenue was $94,426 and the variable lease payments were $6,875. The operating lease cost was $93,249, and the variable lease cost was $1,391.
This information is useful for prospective Carls franchisees as it provides insight into the financial performance of the company's leasing activities. Understanding the components of rent revenue and expenses can help franchisees assess the financial health of Carls and the potential risks and rewards associated with investing in a franchise.
It's important to note that these figures are specific to fiscal year 2023 and may not be indicative of future performance. Factors such as changes in market conditions, lease terms, and operating costs can impact rent revenue and expenses. Franchisees should carefully review Carls's financial statements and consult with financial advisors to make informed investment decisions.
It is also important to note that there are other figures for fiscal year 2023 net rent income, but they are not specifically under SC 842. One table shows net rent income of $12,079 for fiscal year 2023, while another shows $6,661 for the same period. It is important to understand the differences in these figures and what they represent.