What was the total amount of royalties Carls collected from franchised restaurants in the most recent year presented in the financial statements?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchised restaurants and other revenue includes royalties, franchise fees, and rent revenue. Royalties from franchised restaurants are based on a percentage of net sales of the franchised restaurant and are recognized as earned. Royalties are typically billed and paid monthly and are usually 4% to 5% per restaurant.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the financial statements do not explicitly state the total amount of royalties Carls collected from franchised restaurants. However, the FDD does provide information on how royalties are calculated and recognized.
Carls recognizes royalties from franchised restaurants based on a percentage of the restaurant's net sales. These royalties are recognized as they are earned. Typically, these royalties range from 4% to 5% per restaurant and are billed and paid monthly.
While the FDD outlines the method for calculating and collecting royalties, it does not provide a specific aggregate figure for the total royalties collected during the most recent fiscal year. A prospective franchisee should inquire directly with Carls about the total royalty revenue collected in recent years to understand the financial performance and stability of the franchise system.