What was the total amount spent on advertising for Carls franchised restaurants and other in fiscal year 2023?

According to Carls's 2024 Franchise Disclosure Document, the advertising funds expense for fiscal year 2023 was $200,436. This figure represents the total amount spent on advertising for both company-operated and franchised Carls restaurants.

This expense is a significant operating cost, reflecting Carls's investment in marketing and brand awareness. For a prospective franchisee, this indicates the level of financial commitment Carls makes to support its brand through advertising. It is important to note that advertising and marketing contributions for both company-operated and franchised restaurants are generally determined based on a percentage of revenue and contributed to the applicable funds ratably throughout the year.

Understanding the allocation of these advertising funds is crucial. Carls administers the Carl's Jr. Fund advertising and marketing programs, certain international advertising funds, and HNAF internally. A third party administers the Hardee's local co-operative advertising funds. Franchisees should inquire about the specific advertising strategies and how they benefit from these expenditures.

It is also worth noting that the advertising costs for company-operated restaurants' contributions to the Advertising Funds is eliminated in consolidation. The advertising contributions by company-operated restaurants totaled $17,934 for fiscal year 2023. This separation of expenses provides a clearer picture of how advertising funds are managed and spent within the Carls system.