What entities comprise the Securitization Entities included in the Carls Jr. financial statements?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this disclosure document as Exhibit J are the audited combined consolidated financial statements of the Securitization Entities (Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC and Hardee's Funding LLC), which comprise (1) the combined consolidated balance sheets as of January 27, 2025 and January 29, 2024, and the related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, and the related notes to the combined consolidated financial statements; and (2) the combined consolidated balance sheets as of January 29, 2024 and January 30, 2023, and the related combined consolidated statements of income, members' deficit, and cash flows for the fiscal years then ended, and the related notes to the combined consolidated financial statements. Each of the CKE Securitization Entities (other than CJR) has agreed absolutely and unconditionally to guarantee to assume our duties and obligations under the franchise agreements entered into by us, should we become unable to perform our duties and obligations. A copy of those guarantees are attached as part of Exhibit J to this disclosure document.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the audited combined consolidated financial statements of the Securitization Entities include several specific entities. These entities are Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC, and Hardee's Funding LLC. These financial statements comprise combined consolidated balance sheets as of January 27, 2025, and January 29, 2024, along with related statements of income, members' deficit, and cash flows for the fiscal years then ended, including notes.
The inclusion of these Securitization Entities in the financial statements provides a more comprehensive view of the financial health and obligations related to the Carls Jr. franchise system. It is important to note that each of these CKE Securitization Entities (other than CJR) has agreed to guarantee the obligations under the franchise agreements, ensuring that franchisees' interests are protected should Carls Jr. become unable to fulfill its duties.
For a prospective franchisee, understanding the structure and financial standing of these Securitization Entities is crucial. It offers insight into the financial safeguards in place and the broader financial network supporting the Carls Jr. franchise system. Reviewing the financial statements and related notes for these entities, which are included as Exhibit J to the disclosure document, can help potential franchisees assess the financial stability and risks associated with investing in a Carls Jr. franchise.