What was the total interest expense for Carls franchises in fiscal year 2023?

According to Carls' 2024 Franchise Disclosure Document, the total interest expense for the fiscal year 2023 was $62,752. This figure represents the cumulative interest expenses related to various financial obligations, including notes, amortization of deferred financing costs, finance leases, financing method sale-leaseback obligations, and letter of credit fees.

Specifically, the interest expenses are broken down into several categories. Series 2018-1 Class A-2 Notes accounted for $30,364, Series 2020-1 Class A-2 Notes accounted for $15,643, and Series 2021-1 Class A-2 Notes accounted for $5,092. Additional interest expenses included $3,352 for the amortization of deferred financing costs, $1,302 for finance leases, $6,276 for financing method sale-leaseback obligations, and $723 for letter of credit fees, commitment fees, and other related expenses.

For a prospective Carls franchisee, understanding these interest expenses is crucial as it provides insight into the financial obligations and capital structure of the company. While this figure reflects the total interest expense for the entire Carls system, it does not directly translate to the interest expenses a new franchisee might incur. Franchisees should consider their own financing arrangements and consult with financial advisors to understand their potential interest expenses. The interest expenses of the overall Carls organization can provide a benchmark for assessing the financial health and stability of the brand.