What was the total value of Carls' cash and cash equivalents, restricted, as of January 31, 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
se treatment, establishing depreciable lives for leasehold improvements and establishing straight-line rent expense periods;
- estimation of the appropriate allowances associated with franchise and other receivables;
- determination of the appropriate assumptions to estimate gift card breakage;
- determination of the appropriate assumptions to es
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the company's restricted cash and cash equivalents totaled $16,053 as of January 31, 2023. These funds are held by a trustee for the Series 2018-1, Series 2020-1, and Series 2021-1 Senior Notes and are specifically earmarked for debt service payments related to these notes.
This restricted cash is not available for general operational use by Carls. It is set aside to ensure that the company meets its debt obligations to the noteholders.
For a prospective franchisee, this information provides insight into Carls's financial obligations and how they manage their debt. While the franchisee will not have direct access to or control over these restricted funds, understanding the company's debt structure and how it is managed can be useful in assessing the overall financial health and stability of the franchise system.