What was the reported value of land owned by Carls and leased to others 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 value of land owned by Carls and leased to others in 2023 was $118,052. This figure is part of the total assets leased to others, which also includes leasehold improvements and buildings and improvements. The total assets leased to others by Carls in 2023 amounted to $141,157 after accounting for accumulated depreciation and amortization.
This information is relevant for prospective franchisees as it provides insight into Carls's real estate holdings and leasing activities. Understanding the value of land and other assets leased to others can help franchisees assess the financial stability and real estate strategy of the company. It also shows how Carls manages its assets and generates revenue through leasing.
It's important to note that these figures are based on Carls's financial statements and accounting practices. The value of land and other assets may fluctuate over time due to market conditions, depreciation, and other factors. Franchisees should consider these factors when evaluating the financial performance of Carls and the potential risks and rewards of investing in a franchise.