What was the total long-term debt, less the current portion, for Carls in 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
following:
| 2024 | 2023 | |
|---|---|---|
| Salaries, wages and other benefits | $ 15,610 | $ 8,802 |
| Income taxes payable | 13,955 | 9,887 |
| Financing method sale-leaseback liability, current portion | 11,287 | 10,170 |
| Accrued interest | 5,663 | 5,934 |
| Gift card and gift certificate liabilities | 4,479 | 4,651 |
| Estimated liability for self-insurance, current portion | 3,545 | 5,813 |
| Deferred franchise and development fees | 3,454 | 3,376 |
| Accrued property taxes | 3,089 | 4,573 |
| State sales tax | 2,017 | 2,288 |
| Utilities |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total long-term debt, less the current portion, was $1,116,405 in 2023. This figure represents the amount of debt that Carls owes beyond the next 12 months.
This information is crucial for prospective franchisees as it provides insight into the financial leverage and stability of Carls. A high level of long-term debt could indicate higher financial risk, as the company has significant obligations to meet in the future. Conversely, it could also reflect investments in growth and expansion.
Franchisees should consider this debt level in conjunction with other financial metrics, such as revenue and profitability, to assess the overall financial health of Carls. Understanding the franchisor's financial obligations can help franchisees make informed decisions about the potential risks and rewards of investing in a Carls franchise.