What was the net value of Carls' intangible assets as of January 31, 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| ACCETE | Carl's Jr. | F | Carl's Jr. | Carl's Jr. SPV | R | Hardee's estaurants LLC | F | Hardee's | rdee's SPV | Eliminations | Se | The CKE curitization Entities | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| taurants LLC | unding LLC | Guarantor LLC | Funding LLC | trantor LLC | ||||||||||||
| ASSETS Current assets: | ||||||||||||||||
| Cash and cash equivalents | S | 1,627 | S | 1.161 | S | _ | $ | 3,555 | S | 977 | S | _ | $ | S | 7,320 | |
| Cash and cash equivalents - restricted | _ | 16,053 | _ | _ | _ | - | _ | 16,053 | ||||||||
| Accounts receivable, net | 10,663 | _ | 10,036 | _ | 20,699 | |||||||||||
| Due from affiliates | 6,860 | 20,696 | - | 52,060 | 215 | _ | (79,292) | 539 | ||||||||
| Inventories | 562 | _ | _ | 2,411 | - | 2,973 | ||||||||||
| Prepaid expenses | _ | 16 | - | 137 | 20 | - | 173 | |||||||||
| Other current assets | 83 | _ | 83 | |||||||||||||
| Total current assets | 19,795 | 37,926 | 68,199 | 1,212 | _ | (79,292) | 47,840 | |||||||||
| Property and equipment, net | 83,427 | 266,461 | 349,888 | |||||||||||||
| Operating lease assets | ******* | 317,666 | - | 93,790 | - | - | - | 411,456 | ||||||||
| Intangible assets, net | ****** | 384,915 | _ | 408,115 | _ | _ | 793,030 | |||||||||
| Other assets, net | 13,000 | - | 15,810 | _ | 28,810 | |||||||||||
| Total assets. | S | 818,803 | $ | 37,926 | S | $ | 852,375 | $ | 1,212 | $ | $ | (79,292) | S | 1,631,024 | ||
| LIABILITIES AND MEMBERS' DEFICIT | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Current portion of long-term debt | s | _ | 8 | 5,900 | 5 | - | $ | - | 5 | 5,900 | $ | 1 | 8 | - | 5 | 11,800 |
| Current portion of finance leases | 627 | _ | _ | 641 | _ | _ | _ | 1,268 | ||||||||
| Current portion of operating leases | 59,930 | _ | 16,312 | _ | _ | 76,242 | ||||||||||
| Accounts payable | 2,849 | _ | _ | 3,358 | _ | _ | 6,207 | |||||||||
| Due to affiliates | (564) | 55,477 | _ | 3,779 | 25,677 | _ | (79,292) | 5,077 | ||||||||
| Other current liabilities | 10,931 | 2,982 | _ | 18,435 | 2,968 | - | 35,316 | |||||||||
| Total current liabilities | 73,773 | 64,359 | _ | 42,525 | 34,545 | _ | (79,292) | 135,910 | ||||||||
| Long-term debt, less current portion | _ | 558,203 | _ | - | 558,202 | 1,116,405 | ||||||||||
| Finance leases, less current portion | 5,269 | _ | 9,159 | - | - | 14,428 | ||||||||||
| Operating leases, less current portion | 269,290 | _ | _ | 80,987 | _ | _ | 350,277 | |||||||||
| Other long-term liabilities | 68,431 | -(1) | 194,080 | - | 262,510 | |||||||||||
| Total liabilities | 416,763 | 622,561 | 326,751 | 592,747 | (79,292) | 1,879,530 | ||||||||||
| Members' equity (deficit): | ||||||||||||||||
| Members' equity (deficit) | 402,040 | (584,635) | Π| - | 525,624 | (591,535) | _ | _ | (248,506) | |||||||
| Total liabilities and members' equity deficit | s | 818,803 | $ | 37,926 | S | S | 852,375 | S | 1,212 | $ | _ | $ | (79,292) | S | 1,631,024 |
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING BALANCE SHEET (In thousands)
January 31, 2022 The CKE Carl's Jr. Carl's Jr. Carl's Jr. SPV Hardee's Hardee's Hardee's SPV Securitization Restaurants LLC Restaurants LLC Funding LLC Guarantor LLC Funding LLC Guarantor LLC Eliminations Entities ASSETS Current assets: 3,473 S 1.755 $ Cash and cash equivalents 7,313 $ 20,002 $ 32,543 Cash and cash equivalents - restricted. 16,059 16,059 Accounts receivable, net. 11,220 10,468 21,689 Due from affiliates 14.572 17,205 59,951 202 (88, 272)3,658 Inventories 555 2,575 3.130 13 13 Prepaid expenses 5,688 3,159 8,873 Other current assets 24 24 Total current assets 39,372 53,279 79,626 1,971 (88, 272)85,976 80,869 261,016 Property and equipment, net 341,885 Long-term investments 417,096 426,139 843,235 Intangible assets, net Other assets, net 12,195 13,972 26,167 Total assets 549.532 53.279 780,753 1.971 $ (88,272) S 1.297,263 LIABILITIES AND MEMBERS' DEFICI
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the consolidated balance sheet for The CKE Securitization Entities shows the net value of intangible assets for Carl's Jr. as of January 31, 2022. The listed value combines several entities, including Carl's Jr. SPV, Hardee's, Hardee's SPV, Securitization Restaurants LLC, Funding LLC, and Guarantor LLC, along with eliminations between these entities.
The combined net value of intangible assets for these entities totaled $426,139 thousand as of January 31, 2022. This figure represents the amortized cost of items like franchise agreements, trademarks, and other intellectual property that contribute to the brand's long-term value.
For a prospective franchisee, understanding the value and composition of these intangible assets is crucial. These assets underpin the brand's recognition and competitive advantage. While the consolidated balance sheet provides an aggregate view, franchisees may want to inquire about the specific intangible assets relevant to the Carl's Jr. brand and how the franchisor protects and enhances these assets.