What were the outstanding payables to affiliates related to Carls as of January 31, 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| January 31, 2024 | January 31, 2023 | |
|---|---|---|
| LIABILITIES AND MEMBERS' DEFICIT | ||
| Current liabilities: | ||
| Due to affiliates | 1,989 | 5,077 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the combined consolidated balance sheet shows the outstanding payables to affiliates, referred to as 'Due to affiliates,' as of January 31, 2023. This figure represents the amount Carls owes to its affiliated entities.
As of January 31, 2023, the 'Due to affiliates' amount was $5,077. This indicates the current liabilities of Carls to its affiliates for various inter-company transactions, services, or other financial obligations.
For a prospective franchisee, this figure provides insight into the financial relationships between Carls and its related entities. It is important to understand the nature of these affiliate transactions and how they might impact the financial stability and operations of the franchise system. Reviewing the notes to the financial statements for more details on these transactions is advisable.