What was the total revenue from franchised restaurants and other sources for Carls in fiscal year 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Jan | uary 31, 2023 | Jan | uary 31, 2022 | |
|---|---|---|---|---|
| ASSETS | ||||
| Current assets: | 281/457 $257 | |||
| Cash and cash equivalents | 107,853 | $ | 130,508 | |
| Cash and cash equivalents - restricted | 16,053 | 16,059 | ||
| Accounts receivable, net | 37,541 | 39,123 | ||
| Inventories | 2,999 | 4,220 | ||
| Prepaid expenses | 6,183 | 21,605 | ||
| Other current assets | 83 | 24 | ||
| Total current assets | - | 170,712 | 211,539 | |
| Property and equipment, net | 371,572 | 362,149 | ||
| Operating lease assets | 448,064 | _ | ||
| Goodwill | 540,083 | 540,083 | ||
| Intangible assets, net | 793,030 | 844,385 | ||
| Other assets, net | 29,806 | 27,413 | ||
| Total assets | $ | 2,353,267 | $ | 1,985,569 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities: | ||||
| Current portion of long-term debt | $ | 13,700 | $ | 11,800 |
| Current portion of finance leases | 1,268 | 1,466 | ||
| Current portion of operating leases | 85,529 | _ | ||
| Accounts payable | 28,159 | 34,312 | ||
| Other current liabilities | 66,753 | 105,608 | ||
| Total current liabilities | 195,409 | _ | 153,186 | |
| Long-term debt, less current portion | 1,116,405 | 1,127,614 | ||
| Finance leases, less current portion | 14,428 | 15,164 | ||
| Operating leases, less current portion | 381,495 | |||
| Deferred income tax liabilities, net | 175,131 | 175,309 | ||
| Other long-term liabilities | 277,497 | 349,110 | ||
| Total liabilities | 2,160,365 | 1,820,383 | ||
| Commitments and contingencies (Notes 8, 9, 10 and 14) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total revenue from franchised restaurants and other sources for fiscal year 2023 was $302,674. This figure represents the income Carls received from its franchise operations, including royalties, rent, franchise fees, and other related sources. This revenue stream is a critical component of Carls's overall financial performance, reflecting the strength and reach of its franchise network.
For a prospective franchisee, this number highlights the financial scale of Carls's franchise system. It indicates the potential revenue that can be generated through franchising, which supports Carls's ability to invest in brand development, operational support, and marketing initiatives. A higher revenue from franchised restaurants typically suggests a more robust and successful franchise model.
It is important to note that this revenue figure does not represent the profits of individual franchisees. Rather, it reflects the revenue Carls collects from its franchisees. Prospective franchisees should carefully review Item 19 in the FDD and speak with existing franchisees to understand their individual financial performance and profitability. Understanding both the franchisor's revenue and the franchisees' profitability is crucial for making an informed investment decision.