What is the status of Carls' services, royalties, fees, and authorization of additional locations for the master franchisee in Russia as of July 7, 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
As of July 7, 2022, we ceased providing any and all services to our master franchisee for the country of Russia. Our master franchisee has one franchised and sixteen subfranchised restaurants in Russia. Additionally, we have ceased collecting any royalties or fees of any type from the operation of these locations and do not approve or authorize additional locations.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls' 2024 Franchise Disclosure Document, as of July 7, 2022, Carls ceased providing services to its master franchisee in Russia. The master franchisee operated one franchised and sixteen subfranchised restaurants in Russia.
Carls also stopped collecting royalties or fees from these locations. Furthermore, Carls does not approve or authorize the opening of any additional locations in Russia.
This indicates a complete cessation of support and financial transactions between Carls and its Russian operations due to circumstances as of that date. Prospective franchisees should be aware that international events can significantly impact franchise operations and the franchisor-franchisee relationship.