What was the total rent revenue for Carls in 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Other Franchise & Company Operated Franchise & Other Fiscal: 2025 $ 1,573 $ 1,501 $ 15,730 $ 67,153 2026 1,629 1,426 14,906 59,669 2027 1,658 1,358 13,995 50,431 2028 1,672 1,302 12,851 42,140 2029 1,684 1,161 11,193 31,607 Thereafter 16,147 5,032 49,311 86,809 Total minimum lease payments 24,363 11,780 117,986 337,809 Less amount representing interest (8,010) (3,249) (12,640) (29,702) Present value of minimum lease payments 16,353 8,531 105,346 308,107 Less current portion (634) (881) (13,375) (60,398) Lease obligations, less current portion $ 15,719 $ 7,650 $ 91,971 $ 247,709 Net rent under non-cancelable operating leases was as follows:
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Rent revenue: | ||
| Minimum rent revenue | $ 87,594 | $ 91,482 |
| Variable rent revenue | 6,334 | 6,622 |
| Total rent revenue | 93,928 | 98,104 |
| Rent expense: | ||
| Operating lease cost | (85,267) | (84,890) |
| Variable lease cost | (1,229) | (1,135) |
| Total operating lease cost | (86,496) | (86,025) |
| Net rent income | $ 7,432 | $ 12,079 |
Lease Term and Discount Rate as of January 31,
Weighted-average remaining lease term:
| | 2024 | 2023 | |----------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total rent revenue for fiscal year 2023 was $98,104, as detailed in one excerpt. Another excerpt from the FDD states the total rent revenue for 2023 was $101,301. These figures include both minimum rent revenue and variable lease payments.
It is important to note that the FDD contains multiple, slightly different figures for the same metric (total rent revenue in 2023). This discrepancy could be due to different accounting methods, the inclusion of different subsidiaries, or revisions made during the audit process.
A prospective Carls franchisee should seek clarification from the franchisor regarding these discrepancies to understand which figure is most relevant to their specific franchise location and financial projections. Understanding the components of rent revenue, such as minimum rent versus variable rent, can also help a franchisee better forecast their potential expenses and profitability.