What was the amount of cash distribution paid to Parent's shareholders by Carvel in 2023?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
d tax liabilities | 64,182 | 74,271 | | Long-term deferred revenue | 58,571 | 55,362 | | Long-term other liabilities | 1,452 | 1,458 | | Total liabilities | 1,642,209 | 1,578,777 | | Commitments and contingencies (see Note 11) | | | | Member's deficit: | | | | Member's deficit | (759,874) | (696,181) | | Total member's deficit | (759,874) | (696,181) | | Total liabilities and member's deficit | $ 882,335 | $ 882,596 |
Consolidated statements of operations
| Deferrals due to cash received and other | 14,761 10,499 |
|---|---|
| Deferred revenue and Long-term deferred revenue $ 62,259 $ 58,511 | |
Consolidated statements of changes in member's deficit
| | Memb
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, in 2023, Carvel paid $162,487 in cash distribution to its Parent's shareholders. This is a decrease from the $123,066 paid in 2024. These distributions are part of Carvel's broader financing activities, which include borrowings, debt payments, and proceeds from stock issuance.
For a prospective franchisee, this indicates how Carvel manages its finances and allocates capital. While these distributions don't directly impact day-to-day franchise operations, they reflect the financial priorities of the parent company. Understanding these financial decisions can provide insights into the long-term stability and strategic direction of the Carvel brand.
It's important to note that future decisions regarding cash distributions are at the discretion of Carvel's Board and will depend on the company's operating performance and other factors. The FDD states that as of December 29, 2024, Carvel was not aware of any plans to pay distributions in the future. Franchisees should monitor Carvel's financial performance and strategic decisions to assess the potential impact on their investment.