What was the reported value of land owned by Carls in 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
with leases in which we are the lessee, $31,187 of unfavorable lease liabilities, $13,323 of deferred rent liabilities, $656 of tenant allowances which have been reclassified to operating lease assets.
- h. Represents operating lease asset store impairments.
Company as Lessor
We lease and sublease land and buildings to others, primarily as a result of the refranchising of
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the reported value of land owned by Carls in 2023 was $118,052. This figure is part of the combined consolidated financial statements for Carl's Jr. SPV Guarantor LLC and its subsidiaries, and Hardee's SPV Guarantor LLC and its subsidiaries. These financial statements provide a snapshot of the company's assets and liabilities at the end of the fiscal year.
For a prospective franchisee, understanding the value of land owned by Carls can provide insights into the company's overall financial health and investment in real estate. Land ownership can be a significant asset, potentially providing long-term value and stability. However, it's important to note that these figures are part of a larger financial picture, and should be considered in conjunction with other assets, liabilities, and financial performance metrics.
It is also important to note that this value is related to land that Carls owns and leases to others. This means that Carls is acting as a landlord for these properties. The total assets leased to others in 2023 was $141,157, which includes land, leasehold improvements, and buildings and improvements, less accumulated depreciation and amortization. This indicates that Carls has a significant investment in real estate that it leases out, which could be a source of revenue for the company.