For Carls, what was the total amount of facility action charges, net, for fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Impairment charges recorded against property and equipment of 2,927 and $1,581 were recognized in facility action charges, net in fiscal 2023 and 2022, respectively.
Impairment charges recorded against property and equipment and operating lease assets of $4,101 and $2,558 were recognized in facility action charges, net in fiscal 2023 and 2022, respectively.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, facility action charges, net, are costs associated with restaurants that have carrying values exceeding their fair values. These charges may include impairment charges, store closure costs, and gains or losses on the sale of restaurants, including refranchising transactions.
Based on the provided financial statements, for the fiscal year 2022, impairment charges recorded against property and equipment of $1,581 were recognized in facility action charges, net. Additionally, impairment charges recorded against property and equipment and operating lease assets of $2,558 were recognized in facility action charges, net in fiscal year 2022.
Therefore, the total amount of facility action charges, net, for Carls in fiscal year 2022 is the sum of these two amounts. This means that the total facility action charges, net, for fiscal year 2022 was $4,139.