What was the total amount of accounts receivable, net, for Carl's Jr. Restaurants LLC?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| 3,730 | — | ||
|---|---|---|---|
| Contributed assets for the CKE Restaurants Acquisition (see Note 5)(1) | 3,438 | — | |
(1) Contributed property and equipment, contributed other assets and contributed assets for the CKE Restaurants Acquisition represent assets purchased by CKE Restaurants and certain of its wholly owned subsidiaries on behalf of the CKE Securitization Entities pursuant to the Management Agreement. For accounting purposes, these purchases are treated as non-cash contributions to the CKE Securitization Entities.
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING BALANCE SHEET (In thousands)
January 31, 2024
| ASSETS | Carl's Jr. Restaurants LLC | Carl's Jr. Funding LLC | Carl's Jr. SPV Guarantor LLC | Hardee's Restaurants LLC | Hardee's Funding LLC | Hardee's SPV Guarantor LLC | Eliminations | The CKE Securitization Entities | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Current assets: | ||||||||||
| Cash and cash equivalents $ | 2,117 $ | 3,996 $ | — $ | 3,685 $ | 2,542 $ | — $ — $ | 12,340 | |||
| Cash and cash equivalents - restricted | — | 15,942 | — | — | — | — | — | 15,942 | ||
| Accounts receivable, net | 11,160 | — | — | 10,588 | — | — | — | 21,748 | ||
| Due from affiliates | 11,625 | 20,328 | — | 56,241 | 238 | — | (88,007) | 425 | ||
| Inventories | 559 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Carl's Jr. Restaurants LLC had accounts receivable, net, of $11,160 in one period and $10,663 in another period. These figures represent the money owed to Carl's Jr. Restaurants LLC by its customers or other parties, after accounting for any potential uncollectible amounts.
For a prospective franchisee, accounts receivable can impact the financial health of the franchise. While franchisees typically deal with immediate transactions, understanding the parent company's receivable management can provide insight into the overall financial stability of Carls. Strong accounts receivable indicate efficient revenue collection and financial management.
It is important to note that these figures are specific to Carl's Jr. Restaurants LLC and do not reflect the financial performance of individual franchised locations. Franchisees should focus on managing their own accounts receivable effectively to maintain a healthy cash flow and profitability. Reviewing these figures in the context of the full financial statements can offer a more comprehensive understanding of Carls's financial position.