Carl’s Jr. Franchise FDD, Profits, Costs & Fees (2024)
Carl’s Jr. was founded on July 17, 1941, by Carl Karcher and his wife, Margaret. The brand began with a small hot dog cart in Los Angeles, purchased with savings and a car loan. Originally named Carl’s Drive-In Barbecue, it rebranded as Carl’s Jr. in 1956. For over 75 years, Carl’s Jr. has led the quick-service restaurant sector.
The menu is known for innovative offerings like the Western Bacon Cheeseburger®, Super Star®, and the Beyond Famous Star with Cheese®. It also features items like Hand-Breaded Chicken Tenders and Made From Scratch™ Biscuits to cater to varied tastes.
The franchise started franchising in 1984, allowing entrepreneurs to join the growing network. The headquarters moved from Anaheim, California, to Franklin, Tennessee, reflecting the brand’s evolution and adaptation to the fast-food industry’s changing landscape.
Carl’s Jr. Franchise Stats
Carls Jr.
Number of units: 1,020 franchises
Initial investment: $1,303,000 - $3,436,000
Average revenue (AUV): $1,568,000
Initial Investment
How much does it cost to start a Carl’s Jr. franchise? It costs on average between $1,303,000 – $3,436,000 to start a Carl’s Jr. franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Fees to CJR: Initial Franchise Fee | $25,000 |
| Opening Training Support Team Fee | $30,000 – $70,000 |
| Building | $500,000 – $1,200,000 |
| Site Improvements | $100,000 – $850,000 |
| Soft Costs | $50,000 – $150,000 |
| Equipment | $300,000 – $500,000 |
| Signage | $75,000 – $150,000 |
| Point of Sale System | $45,000 – $65,000 |
| Initial Training | $20,000 – $60,000 |
| Pre-Opening Costs | $8,000 – $23,000 |
| Additional Funds – 3 months | $160,000 – $250,000 |
| Total Estimated Initial Investment | $1,303,000 – $3,436,000 |
Average Revenue (AUV)
How much revenue can you make with a Carl’s Jr. franchise? A Carl’s Jr. franchised restaurant makes an average of $1,568,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,548,000 yearly revenue for similar burger franchises. Below are 10 Carl’s Jr. competitors as a comparison:
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Carls Jr. Franchise Disclosure Document
Frequently Asked Questions
How many Carl’s Jr. locations are there?
As of the latest data, Carl’s Jr. operates approximately 1,121 locations in the United States, with the majority being franchised units (1,072) and a smaller number being corporate-owned (49).
These figures suggest Carl’s Jr.’s strong franchising presence across the country, primarily focused on the western U.S. markets. The small variation between sources may reflect updates or differences in reporting.
What is the total investment required to open a Carl’s Jr. franchise?
The total investment required to open a Carl’s Jr. franchise ranges from $1,303,000 to $3,436,000.
What are the ongoing fees for a Carl’s Jr. franchise?
For a Carl’s Jr. franchise, franchisees are required to pay an ongoing royalty fee of 4% of gross sales. Additionally, there is a marketing fee of 6% of gross revenues. These fees are standard across the franchise and contribute to the brand’s ongoing support, marketing efforts, and development initiatives provided to the franchise network.
What are the financial requirements to become a Carl’s Jr. franchisee?
To become a Carl’s Jr. franchisee, the financial requirements include a minimum net worth of $1.5 million and liquid capital of at least $500,000.
These requirements ensure that potential franchisees have the necessary financial capacity to cover the initial investment, support ongoing business needs, and maintain operational stability as they build their Carl’s Jr. franchise.
How much can a Carl’s Jr. franchise owner expect to earn?
The average gross sales for a Carl’s Jr. franchise are approximately $1.57 million per location. Assuming a 15% operating profit margin, $1.57 million yearly revenue can result in $235,500 EBITDA annually.
Who owns Carl’s Jr.?
Carl’s Jr. is owned by CKE Restaurants Holdings, Inc., which is also the parent company of the Hardee’s brand. CKE oversees both chains, operating them with a similar menu and branding strategy across different regions.
Disclaimer
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