What was the weighted-average remaining lease term for Carls finance leases as of January 31, 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Finance leases | 12.11 years | 10.19 years |
| Operating leases | 7.67 years 7.89 years | |
| Weighted-average discount rate: | ||
| 2024 | 2023 | |
| Finance leases | 6.5 % | 8.1 % |
| Operating leases | 2.4 % | 1.8 % |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the weighted-average remaining lease term for finance leases as of January 31, 2023, was 10.19 years. This figure represents the average length of time left on all of Carls' finance leases, weighted by the size or value of each lease.
For a prospective franchisee, this information provides insight into the duration of Carls's existing lease obligations. It suggests the typical length of lease commitments Carls enters into for its operations. Understanding the lease terms is crucial for franchisees as it impacts long-term financial planning and obligations.
It's important to note that this is an average across all of Carls' finance leases. Individual franchise locations may have lease terms that vary significantly from this average depending on specific location agreements. Franchisees should consult with Carls to understand the specific lease terms applicable to their potential location.