What were the proceeds from refranchising transactions for Carls in fiscal year 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
---------------------------------------------|---------------------| | Capital contributions | 45,394 | | Distributions to members | (139,428) | | Net income | 97,797 | | Cumulative effect of change in accounting principle (Note 9) | (452) | | Balance as of January 31, 2023 | (248,506) | | Capital contributions | 35,679 | | Distributions to members | (133,746) | | Net income | 108,945 | | Balance as of January 31, 2024 | $ (237,628) |
THE CKE SECURITIZATION ENTITIES COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income $ | 108,945 | $ 97,797 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 46,692 | 44,580 |
| Amortization of deferred financing costs | 3,419 | 3,352 |
| Gain on early termination of lease agreement associated with a financing method sale-leaseback | — | (1,285) |
| restaurant property | ||
| Gain on refranchising transaction | (817) | — |
| (Gain) loss on disposal of other property and equipment | (602) | 512 |
| Provision for losses on impairments, accounts receivable and other items, net | 4,806 | 318 |
| Net changes in operating assets and liabilities: | ||
| Receivables, inventories, prepaid expenses and other current and non-current assets | (1,985) | 4,247 |
| Accounts payable and other current and long-term liabilities | (3,089) | (13,013) |
| Operating lease assets and liabilities, net | 1,096 | 511 |
| Net cash provided by operating activities | 158,465 | 137,019 |
| Cash flows from investing activities: | ||
| Proceeds from refranchising transactions | 2,092 | — |
| Proceeds from sale of other property and equipment | 2,412 | 1,957 |
| Other investing activities | 154 | 215 |
| Net cash provided by investing activities | 4,658 | 2,172 |
| Cash flows from financing activities: | ||
| Net change in book overdraft | (1,260) | (1,952) |
| Repayments of Class A-2 Notes | (11,800) | (11,800) |
| Payment for deferred financing costs of Series 2018-1 VFN Notes | — | (861) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the proceeds from refranchising transactions during fiscal year 2024 were $2,092. This figure represents the cash inflow Carls received from selling existing franchise locations back to franchisees.
For a prospective franchisee, this number provides insight into Carls's strategy regarding its franchise network. Refranchising can be a way for a franchisor to optimize its operations, allowing existing franchisees to expand their portfolios.
It's important to note that while this figure reflects the proceeds from refranchising, it doesn't detail the number of restaurants refranchised or the specific terms of those transactions. Further research into Carls's refranchising activities and discussions with current franchisees could provide a more comprehensive understanding of this aspect of the business.