Until what date has Carls evaluated subsequent events for their Combined Consolidated Financial Statements?

According to Carls's 2024 Franchise Disclosure Document, the company evaluated subsequent events through April 4, 2023. This date signifies the cutoff for considering events that occurred after the balance sheet date (January 29, 2024) but before the financial statements were issued.

For a prospective Carls franchisee, this means that the financial statements in the FDD reflect all information known up to April 4, 2023. Any significant events impacting the company's financial position after this date may not be included in these statements. Subsequent events are events that occur after the balance sheet date that provide additional evidence about conditions that existed at the balance sheet date, including estimates inherent in the process of preparing financial statements, or that provide evidence about conditions that did not exist at the balance sheet date but arose subsequent to that date.

It is important to note that Carls concluded no additional subsequent events required disclosure in the financial statements. This indicates that, as of April 4, 2023, there were no events that management deemed necessary to disclose to ensure the financial statements were not misleading. Franchisees should be aware that the financial health of a company can change, and it is advisable to seek updated information if there is a significant time gap between the FDD issuance and the franchise agreement signing.