Carl’s Jr. Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$25,000
Investment required
$1,303,000 - $3,436,000
Carl’s Jr.: Innovating the Fast-Food Experience Since 1941
Carl’s Jr. is a well-known American fast-food franchise that was founded in 1941 by Carl Karcher and his wife, Margaret, in Los Angeles, California. What began as a humble hot dog cart quickly expanded into a thriving business.
By 1945, the Karchers had opened their first full-service restaurant, and the brand continued to grow, eventually focusing on what would become the Carl’s Jr. brand, recognized today as a pioneer in the quick-service restaurant industry.
Headquartered in Franklin, Tennessee, Carl’s Jr. started franchising in 1984. The franchise is particularly famous for its premium-quality, charbroiled burgers, including signature items like the Western Bacon Cheeseburger® and the Beyond Famous Star with Cheese®.
In addition to its iconic burgers, Carl’s Jr. also offers a variety of other menu items, such as Hand-Breaded Chicken Tenders and Made From Scratch™ Biscuits, appealing to a broad customer base.
Initial investment
Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
| Type of Expenditure | Amount |
| Initial Franchise Fee | $25,000 |
| Opening Training Support Team Fee | $30,000 - $70,000 |
| Total Fees to CJR | $55,000 - $95,000 |
| Real Property | Variable |
| 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 |
| Total Build-Out Costs | $1,070,000 - $2,915,000 |
| Initial Training | $20,000 - $60,000 |
| Pre-Opening Costs | $8,000 - $23,000 |
| Additional Funds - 3 months | $160,000 - $250,000 |
| Total Preliminary Operating Expenses | $188,000 - $333,000 |
| Total Estimated Initial Investment for a Carl’s Jr. Restaurant | $1,303,000 - $3,436,000 |
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Franchise Disclosure Document
Training
Carl’s Jr. provides comprehensive training for its franchisees, designed to ensure that each location operates successfully and maintains the brand’s high standards. The training program includes several key components:
- Franchise Management Training Program (FMTP): This is the core training program required for the Operating Principal, General Manager, and up to three other managers. The FMTP is a rigorous 12-week program conducted in a Certified Carl's Jr. Training Restaurant. It covers all aspects of restaurant management, including operations, customer service, and brand standards.
- Shift Control Training: In addition to the FMTP, the General Manager and two Shift Leaders must complete an additional two weeks of Shift Control training. This training focuses on managing day-to-day operations, including scheduling, employee management, and maintaining the quality of service.
- On-Site Training: Before opening a new restaurant, Carl’s Jr. provides on-site training assistance. A team of All Star trainers is sent to the new location to help with the initial setup and training of the entire staff, ensuring that the restaurant is ready to meet customer expectations from day one.
- Ongoing Support: After the restaurant opens, Carl’s Jr. offers ongoing support, including regular visits from Franchise Business Consultants (FBCs) who assist with evaluating and improving business operations. The franchise also provides access to research and development resources to keep franchisees updated on new products and innovations.
Territory Protection
Carl’s Jr. franchise offers territory protection to its franchisees, ensuring that they have a defined area where they can operate without direct competition from other Carl’s Jr. franchises.
This protection is typically outlined in a multi-unit development agreement, which specifies the geographic area, the number of units to be developed, and the timeline for opening those units.
The franchise assesses an area’s potential based on factors like population, demographics, and competition to determine the viability of granting such protection. This territorial exclusivity helps franchisees by reducing the risk of market saturation within their designated area, allowing them to build and grow their business with a level of security.
