What was the total value of buildings and improvements owned by Carls and leased to others in 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
centage of sales in excess of specified levels, is often required. Most leases obligate us to pay costs of maintenance, insurance and property taxes.
Company as Lessor
We lease and sublease land and buildings to others, primarily as a result of the refranchising of certain restaurants. Many of these leases provide for fixed payments, while others provide for variable ren
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total value of buildings and improvements owned by Carls and leased to others was $68,563 in 2024. This figure represents the carrying value of buildings and improvements that Carls owns and leases out, primarily due to the refranchising of certain restaurant locations.
This information is relevant to potential franchisees as it provides insight into Carls's real estate holdings and leasing activities. The company leases and subleases land and buildings to others, often as a result of refranchising restaurants. These leases can involve fixed payments or variable rent based on sales performance. Generally, the lessees or sublessees are responsible for covering the costs of maintenance, insurance, and property taxes.
The financial statement also includes figures for previous years, allowing for a comparison of these assets over time. For example, the value of buildings and improvements leased to others was $86,423 in 2023. This indicates a decrease in the value of these assets from 2023 to 2024.
Understanding these leasing arrangements and asset values can help a prospective franchisee assess the financial stability and real estate strategy of Carls. It also highlights the potential for revenue generation through leasing activities, which may impact the overall financial performance of the company.