What was the total number of Carls franchise transfers across all states in 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 20: OUTLETS AND FRANCHISEE INFORMATION]
| State | Year | Number of Transfers |
|---|---|---|
| NM | 2022 | 0 |
| 2023 | 0 | |
| 2024 | 3 | |
| TX | 2022 | 0 |
| 2023 | 0 | |
| 2024 | 11 | |
| UT | 2022 | 34 |
| 2023 | 10 | |
| 2024 | 0 | |
| TOTAL | 2022 | 39 |
| 2023 | 94 | |
| 2024 | 33 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–79)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total number of franchise transfers across all listed states in 2022 was 39. This number is derived from the sum of transfers in specific states, as detailed in the provided tables. For example, Utah had 34 transfers in 2022, while California, Arizona, Colorado, Idaho, Nevada, and New Mexico had a combined total of 5 transfers. These numbers reflect transfers of restaurants from franchisees to new owners, excluding transfers to Carls, its predecessors, or affiliates.
It's important to note that these figures pertain to specific states listed in the tables, and may not represent all states where Carls franchises operate. The FDD also specifies that the numbers for 2022 through 2024 are as of the end of Carls's fiscal year, which runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year. This detail is crucial for understanding the exact period the data covers.
Prospective franchisees should be aware that franchise transfers can be influenced by various factors, including the financial performance of the restaurants, local market conditions, and the franchisees' personal circumstances. A high number of transfers could indicate potential challenges within the franchise system, while a low number might suggest stability. However, it is essential to investigate the reasons behind the transfers to gain a comprehensive understanding. Carls also indicates that they have signed confidentiality agreements with current and former franchisees that may prevent them from speaking openly about their experiences with the company.
To gain a more complete picture, prospective Carls franchisees should consider contacting existing and former franchisees, consulting with a franchise attorney, and carefully reviewing the entire FDD. Additionally, they should inquire about the reasons for franchise transfers and the support Carls provides to franchisees during the transfer process. The Star Franchise Association is an independent organization comprised of Carls franchisees that a prospective franchisee could contact.