The Carl's Jr. franchise in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Carl's Jr..
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Average Revenue | $1,586,460 | USD | -- | FY2025 |
| Median Revenue | $1,559,367 | USD | -- | FY2025 |
| # Met / Exceeded Average | 28.0 | COUNT | -- | FY2025 |
| % Met / Exceeded Average | 56.0% | PCT | -- | FY2025 |
| Lowest | $343,875 | USD | -- | FY2025 |
| Highest | $2,516,000 | USD | -- | FY2025 |
Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $1,559,367 | 100% |
| COGS | $-467,810 | 30% |
| Labor | $-436,623 | 28% |
| Occupancy | $-155,937 | 10% |
| Marketing | $-62,375 | 4% |
| Other Costs | $-124,749 | 8% |
| Royalty Fee (franchisor) | $-0 | 0% |
| Ad Fund Fee (franchisor) | $-0 | 0% |
| Owner's Profit | $311,873 | 20.0% |
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| Next Fiscal Year | -- | +5 | -- | -- | -- | -- | -- |
| 2023 | 1018 | +6 | -- | -- | 1020 | -- | -- |
| 2024 | 1020 | +9 | -1 | -- | 1014 | 0.1% | -- |
| 2025 | 1014 | +7 | -- | -- | 982 | -- | -- |
How Carl's Jr. compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $263K – $630K | No Item 19 | 8.0% | -- |
| McDonald's | 12772 | $1.47M – $2.64M | $3.00M | 5.0% | 0.7x |
| Dunkin' | 8499 | $527K – $1.83M | No Item 19 | 5.9% | -- |
| Domino's Pizza | 7043 | $120K – $462K | $20K | 5.5% | 14.9x |
| Wendy's | 5552 | $1.41M – $2.90M | $2.33M | 4.0% | 0.9x |
| Burger King | 5524 | $1.80M – $3.30M | $1.67M | 4.5% | 1.5x |
| Dairy Queen | 4400 | $1.15M – $2.44M | No Item 19 | 4.0% | -- |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $540K | $1.35M | 5.0% | 0.2x |
| Arby's | 3400 | $313K – $3.45M | $1.39M | 4.0% | 1.4x |
The franchisee will operate a quick service restaurant offering a limited menu of breakfast, lunch and dinner products featuring charbroiled 100% Black Angus Thickburger sandwiches, Hand-Breaded Chicken Tenders, and Made from Scratch Biscuits at either a Travel Center Location or a Gas and Convenience Location.
Franchisees do not receive an exclusive territory. CJR reserves the right to operate and license others to operate Carl’s Jr. Restaurants in the Development Territory that are located in captive market locations such as airports, stadiums, and travel plazas, or through other channels of distribution like the Internet.
Item 3 discloses several concluded matters, including a $5.5 million settlement in 2022 with a Canadian developer (6Points Food Services Ltd.) and settlements in 2019 regarding no-hire/non-solicitation provisions in franchise agreements. It also notes pending matters involving affiliates and a personal naming of an executive in a suit related to prior employment.
Audited financial statements from the franchisor's FDD (Item 21). These show the financial health of the franchisor entity, not individual franchise units.
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Total Revenue | $0 | $0 | $671,400,000 |
| Royalty Revenue | $0 | $0 | $0 |
| Total Expenses | $0 | $0 | $0 |
| Operating Income | $0 | $0 | $0 |
| Net Income | $0 | $0 | $0 |
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Total Assets | $0 | $0 | $0 |
| Total Liabilities | $0 | $0 | $0 |
| Total Equity | $0 | $0 | $0 |
| Cash & Equivalents | $0 | $0 | $0 |
| Current Ratio | -- | -- | -- |
| Debt-to-Equity | -- | -- | -- |
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Operating | $0 | $0 | $0 |
| Investing | $0 | $0 | $0 |
| Financing | $0 | $0 | $0 |
| Net Change | $0 | $0 | $0 |
Key terms extracted from FDD Items 8-18. Click each section to expand.
Franchisor Financing Available: False
Details: CJR does not offer direct or indirect financing or guarantees for any notes, leases, or obligations.
Pre Opening Assistance:
Ongoing Assistance:
Training Program:
Initial Training Hours: General Manager: 40.32 classroom hours and 155 OJT hours; Shift Leader/GM: 6.23 classroom hours and 97.25 OJT hours.
Location: Designated Training Facility or Certified Training Restaurant (CTR).
Description: The Franchise Management Training Program (FMTP) lasts a minimum of 8 consecutive weeks and covers leadership, operations, and station-specific training.
Exclusive Territory: False
Territory Description: Franchisees do not receive an exclusive territory. The franchise is granted for a specific accepted location only.
Can Franchisor Compete: True
Online Sales Rights: CJR reserves the right to use the Internet and other channels to make sales in the territory using the Proprietary Marks or different marks.
The primary trademarks are 'Carl’s Jr.' and the 'Happy Star' logo, which are registered with the USPTO. Franchisees are granted a non-exclusive license to use these and other designated marks.
CJR does not own any material patents but owns copyrights in advertising materials, the OPM, and architectural plans. Secret recipes and formulas are protected as trade secrets.
Franchisees are not required to participate personally but must designate an 'Operating Principal' who owns at least 10% equity and provides full-time supervision unless a Multi-Unit Manager is approved.
Franchisees must sell only authorized products and services in strict conformity with CJR's methods and specifications. CJR has the right to change the menu and standards at any time.
Term Length Years: 20 years
Renewal Conditions: One renewal term of 10 years (or 5 years at franchisee's option) subject to notice, signing a release, meeting training requirements, being in good standing, remodeling, and paying a renewal fee ($5,000 for 5 years; $10,000 for 10 years).
Termination For Cause Conditions:
Transfer Conditions: Prior written consent required; transferee must be qualified; payment of all debts; execution of a general release; completion of training; and payment of a $2,500 transfer fee.
Non Compete Post Termination:
Duration: 2 years
Radius: 2-mile radius of the Franchised Location or any then-existing Carl’s Jr. Restaurant.
Scope: No interest in any quick-service restaurant format that features 'Designated Entrée Items' (hamburgers, chicken, etc.) accounting for 20% or more of sales.
None
Required Suppliers:
Purchasing Cooperatives: There currently are no purchasing or distribution cooperatives.
Notes: Approximately 90% of purchases for establishment and 65% of ongoing controllable purchases are subject to specifications or approved supplier requirements.
Franchisees must comply with obligations regarding site selection, training, opening, fees, operational standards, trademarks, insurance, advertising, owner participation, and post-termination covenants as detailed in the Franchise and Development Agreements.
SBA 7(a) loan approvals for Carl's Jr. franchisees from the SBA FOIA public dataset. Lenders report franchise codes at origination — this is real lending activity, not estimates.
Source: SBA FOIA 7(a) public data. Franchise codes matched by brand name. Not all SBA loans are captured; some franchisees finance without SBA programs.
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