What was the total interest expense for Carls in fiscal year 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
an anticipated repayment date of March 2031 and a legal final maturity date of March 2054. The Series 2024-1 Class A-2 Term Notes require scheduled quarterly principal payments of $875 with the first principal payment due June 20, 2024. The interest payments for the Series 2024-1 Class A-2 Term Notes are due quarterly in arrears on the 20th day of each March, June, September and December. A portion of the proceeds of the issuance of the Series 2024-1 Class A-2 Term Notes were used to repay the Series 2018-1 Class A-2-II Term Notes in full, including accrued interest.
Interest Expense
Interes
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total interest expense for fiscal year 2023 was $62,752. This figure represents the total cost Carls incurred for its debt financing during that period.
For a prospective franchisee, understanding Carls's interest expenses can provide insight into the financial leverage and debt management of the company. High interest expenses might indicate a higher debt burden, which could impact the company's profitability and ability to support its franchisees. Conversely, lower interest expenses could suggest a more stable financial position.
It is important to note that this interest expense reflects the consolidated financial activities of The CKE Securitization Entities, which includes both Carl's Jr. and Hardee's. Franchisees should consider this figure in the context of the overall financial health of Carls and how it might affect the resources available for franchisee support and brand development.