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What was the total franchised restaurants and other expenses reported for Carls in fiscal year 2023?

Carls Franchise · 2024 FDD

Answer from 2024 FDD Document

Jan uary 31, 2023 Jan uary 31, 2022
ASSETS
Current assets: 281/457 $257
Cash and cash equivalents 107,853 $ 130,508
Cash and cash equivalents - restricted 16,053 16,059
Accounts receivable, net 37,541 39,123
Inventories 2,999 4,220
Prepaid expenses 6,183 21,605
Other current assets 83 24
Total current assets - 170,712 211,539
Property and equipment, net 371,572 362,149
Operating lease assets 448,064 _
Goodwill 540,083 540,083
Intangible assets, net 793,030 844,385
Other assets, net 29,806 27,413
Total assets $ 2,353,267 $ 1,985,569
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 13,700 $ 11,800
Current portion of finance leases 1,268 1,466
Current portion of operating leases 85,529 _
Accounts payable 28,159 34,312
Other current liabilities 66,753 105,608
Total current liabilities 195,409 _ 153,186
Long-term debt, less current portion 1,116,405 1,127,614
Finance leases, less current portion 14,428 15,164
Operating leases, less current portion 381,495
Deferred income tax liabilities, net 175,131 175,309
Other long-term liabilities 277,497 349,110
Total liabilities 2,160,365 1,820,383
Commitments and contingencies (Notes 8, 9, 10 and 14)
Equity:
Common stock, $0.01 par value; 100 shares authorized, issued and outstanding as of January 31, 2023 and 2022 _
Additional paid-in capital 734,314 733,537
Notes receivable from CKE Inc. (441,866)
Accumulated deficit (540,277) (125,600)
Accumulated other comprehensive loss (1,135) (885)
Total equity _ 192,902 - 165,186
Total liabilities and equity $ 2,353,267 $ 1,985,569

**CKE RESTAURANTS HOLDINGS, INC.

Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)

What This Means (2024 FDD)

According to Carls's 2024 Franchise Disclosure Document, in fiscal year 2023, the expenses for franchised restaurants and other totaled $94,432. This figure represents the costs associated with supporting and maintaining Carls's franchised locations, excluding expenses directly related to company-operated restaurants or advertising funds.

For a prospective franchisee, understanding this expense is crucial as it reflects the level of support and resources Carls allocates to its franchise network. A higher figure might indicate more comprehensive support services, while a lower figure could suggest a more limited scope of assistance. It is important to note that this expense does not directly impact the franchisee's operational costs but rather reflects Carls's investment in the franchise system.

This expense is part of the overall operating costs and expenses, which totaled $736,564 for fiscal year 2023. Reviewing this figure in conjunction with other expense categories, such as advertising funds expense ($200,436) and general and administrative expenses ($119,083), provides a comprehensive view of Carls's financial management and resource allocation. Franchisees should consider these figures in the context of Carls's total revenue and profitability to assess the financial health and stability of the franchise system.

It is also worth noting that the revenue from franchised restaurants and other sources was $302,674 in fiscal year 2023. Comparing this revenue to the associated expenses gives an insight into the efficiency and profitability of the franchised operations. Prospective franchisees should analyze these financial metrics over several years to identify trends and potential areas of concern or opportunity.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.