What was the total net property and equipment for Carls in 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Estimated | |||||||
|---|---|---|---|---|---|---|---|
| Useful Life | 2024 | 2023 | |||||
| Land | ................................................................................................................. | $ 191,712 | $ 194,610 | ||||
| Leasehold improvements | ................................................................................. | 3-25 years | 98,777 | 97,064 | |||
| Buildings and improvements | ........................................................................... | 3-40 years | 189,373 | 189,040 | |||
| Equipment, furniture and fixtures.................................................................... | 3-8 years | 108,475 | 89,836 | ||||
| Finance leases | .................................................................................................. | 5-33 years | 18,174 606,511 | 9,264 579,814 | |||
| Less accumulated depreciation and amortization(1)......................................... | (252,618) | (229,926) | |||||
| Total property and equipment, net................................................................... | $ 353,893 | $ 349,888 |
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total net property and equipment was $353,893 in fiscal year 2024. This figure represents the company's investment in land, leasehold improvements, buildings, equipment, and finance leases, less accumulated depreciation and amortization. In comparison, the total net property and equipment in 2023 was $349,888.
These figures are important for prospective franchisees as they provide insight into the financial health and asset management of Carls. A higher net property and equipment value typically indicates that the company has substantial investments in its physical assets, which can contribute to its operational capacity and long-term stability. However, it's also important to consider the depreciation and amortization expenses, as these reflect the wear and tear on the assets over time.
For a prospective franchisee, understanding these figures can help in assessing the overall financial strategy and capital expenditure policies of Carls. It's advisable to compare these values with those of other similar franchises to gauge whether Carls's investment in property and equipment aligns with industry standards and best practices. Additionally, potential franchisees should inquire about the company's plans for future investments in property and equipment, as this can impact the long-term growth and competitiveness of the franchise system.