What was the total amount of distributions to members for Carls as of January 31, 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 total distributions to members as of January 31, 2024, were $133,746. This represents the cash distributions paid out to the members of the CKE Securitization Entities during the fiscal year 2024. These distributions are part of the overall financial activities of the company, reflecting how profits are allocated among its members.
For a prospective franchisee, understanding these distributions is crucial as it provides insight into the financial management and profitability of Carls. While distributions to members don't directly impact the franchisee's day-to-day operations, they reflect the financial health and stability of the parent company. A consistent history of distributions may indicate strong financial performance, while fluctuations could signal potential financial challenges.
It's important to note that these distributions are specific to the CKE Securitization Entities and may not directly correlate with the profitability of individual franchise locations. However, the overall financial health of the parent company can influence the support and resources available to franchisees. Therefore, prospective franchisees should consider these figures as part of their broader due diligence, assessing the long-term viability and stability of the Carls franchise system.
In addition to the distributions made in 2024, the FDD also notes that in the previous fiscal year, 2023, the CKE Securitization Entities paid total cash distributions of $139,428 to members. Reviewing these figures over multiple years can provide a more comprehensive understanding of the distribution trends and the financial performance of Carls.