What was the total franchised restaurants and other expenses reported for Carls in fiscal year 2023?
Carls Franchise · 2024 FDDAnswer 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.