According to Carls's 2024 Franchise Disclosure Document, the total rent and other occupancy expense for company-operated restaurants was $104,616 in fiscal year 2024. For franchised restaurants and other expenses, the amount was $93,626 for fiscal year 2024. These figures are part of the broader financial statement detailing the revenues, operating costs, and expenses for both company-operated and franchised Carls restaurants.

These expenses are significant for prospective franchisees as they represent a substantial portion of the operating costs. Understanding the breakdown of these costs, such as rent, utilities, and other occupancy-related fees, is crucial for assessing the financial viability of a Carls franchise. The FDD also indicates that franchised restaurants and other expenses include rent and occupancy costs related to franchised restaurants, amortization of franchise agreements, and other costs directly related to franchise operations.

It's important to note that these figures reflect Carls's overall financial performance and may not directly translate to the expenses a new franchisee will incur. Factors such as location, lease terms, and local market conditions can significantly impact rent and occupancy costs. Therefore, prospective franchisees should conduct thorough due diligence, including reviewing local real estate costs and negotiating favorable lease terms, to accurately estimate their potential expenses.

Furthermore, the FDD mentions that Carls engages in sale-leaseback transactions, which could affect the rent and occupancy expenses. These transactions involve selling restaurant properties to third parties and then leasing them back. While this strategy can provide Carls with capital, it also creates long-term lease obligations that franchisees should be aware of. Reviewing these transactions and their potential impact on lease terms is an essential part of the franchisee's financial assessment.