What was the total net property and equipment value for Carls in 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
es, less current portion | 259,057 | | — | | — | 80,623 | — | — | — | 339,680 | | Other long-term liabilities | 66,746 | | (1) | | — | 184,056 | — | — | — | 250,801 | | Total liabilities | 404,154 | | 619,807 | | — | 325,063 | 589,454 | — | (88,007) | 1,850,471 | | Members' equity (deficit): | | | | | | | | | | | | Members' equity (deficit) | 403,946 | | (579,519) | | — | 524,597 | (586,652) | — | — | (237,628) | | Total liabilities and members' deficit $ | 808,100 $ | | 40,288 $ | | — $ | 849,660 $ | 2,802 $ | | — $ (88,007) $ | 1,612,843 |
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING BALANCE SHEET (In thousands)
January 31, 2023
| ASSETS | Carl's Jr. Restaurants LLC | Carl's Jr. Funding LLC | Carl's Jr. SPV Guarantor LLC | Hardee's Restaurants LLC | Hardee's Funding LLC | Hardee's SPV Guarantor LLC | Eliminations | The CKE Securitization Entities |
|---|---|---|---|---|---|---|---|---|
| Current assets: | ||||||||
| Cash and cash equivalents $ | 1,627 $ | 1,161 $ | — $ | 3,555 $ | 977 $ | — $ | — $ | 7,320 |
| Cash and cash equivalents - restricted | — | 16,053 | — | — | — | — | — | 16,053 |
| Accounts receivable, net | 10,663 | — | — | 10,036 | — | — | — | 20,699 |
| Due from affiliates | 6,860 | 20,696 | — | 52,060 | 215 | — |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total net property and equipment for the CKE Securitization Entities was $349,888 in 2023. This figure is derived from the combination of Carl's Jr. Restaurants LLC and Hardee's Restaurants LLC net property and equipment values. Specifically, Carl's Jr. Restaurants LLC had $83,427 in net property and equipment, while Hardee's Restaurants LLC had $266,461.
For a prospective franchisee, this indicates the scale of investment Carls has in its physical assets, such as land, buildings, and equipment. A high net property and equipment value can suggest a stable, established brand with significant infrastructure. However, it's important to note that these figures represent the combined assets of multiple entities under the CKE Securitization umbrella, not just the Carls brand alone.
It is also important to consider how depreciation affects the net value of property and equipment. The 'net' value means that accumulated depreciation has already been subtracted from the original cost of these assets. Therefore, while the gross value of property and equipment may be higher, the net value reflects the current book value after accounting for wear and tear.
Franchisees should investigate further into the types of properties and equipment included in these figures to understand the nature of the assets. Understanding the age and condition of these assets can provide insights into potential future capital expenditure requirements for both Carls and its franchisees.