What was the total amount of cash distributions paid to members by the CKE Securitization Entities related to Carls during fiscal year 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
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NOTE 11 — OTHER LONG-TERM LIABILITIES
Other long-term liabilities as of January 31, 2024 and 2023 consisted of the following:
| 2024 | 2023 | ||
|---|---|---|---|
| Financing method sale-leaseback liability, long-term portion | $ | 208,337 | $ 219,707 |
| Deferred franchise |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the CKE Securitization Entities paid total cash distributions of $133,746 to members during fiscal year 2024. This represents the total amount of cash distributed to the members of the entities that handle the securitized debt for both Carls Jr. and Hardee's. These entities are separate from CKE Restaurants.
For a prospective Carls franchisee, this information provides insight into the financial structure and cash flow management within the larger Carls organization. It demonstrates the movement of capital within the company's financial framework. However, it is important to note that these distributions do not directly reflect the profitability or financial performance of individual Carls franchises.
Understanding the financial relationships between the CKE Securitization Entities and the parent company can help franchisees assess the overall financial health and stability of Carls. While the cash distributions to members are a normal part of corporate finance, franchisees may want to inquire about the factors influencing these distributions and their potential impact on the brand's long-term growth and support for franchisees.