What was the total interest expense for Carls in fiscal year 2024?

According to Carls's 2024 Franchise Disclosure Document, the total interest expense for fiscal year 2024 was $61,863. The FDD also provides a breakdown of various components contributing to this total, such as interest on Series 2018-1 Class A-2 Notes ($30,013), Series 2020-1 Class A-2 Notes ($15,466), Series 2021-1 Class A-2 Notes ($5,034), amortization of deferred financing costs ($3,419), finance leases ($1,318), financing method sale-leaseback obligations ($5,793), and letter of credit fees, commitment fees and other expenses ($820).

For a prospective franchisee, understanding these interest expenses is crucial as it provides insight into Carls's financial obligations and capital structure. The detailed breakdown allows potential franchisees to assess the different types of financing Carls utilizes and the associated costs. This information can be useful in evaluating the overall financial health and stability of the franchisor.

It's important to note that these interest expenses reflect Carls's obligations as a company and are not directly indicative of the costs a franchisee would incur in operating their own unit. However, understanding the franchisor's financial management practices can contribute to a more informed investment decision. Franchisees should focus on Item 7 of the FDD to understand their estimated initial investment and Item 6 for fees they will pay to Carls.