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The real numbers on owning a Carl's Jr. franchise
Quick Service Restaurant (Burger/Fast Food) · FDD 2025 · from public state filings
DDisclosure honesty
This franchisor discloses earnings (Item 19) — but read how.
Investment
$688,000–$1,143,000
Total fees
10% of sales
Outlets
1,032
Closure signals
34 ceased, 0 terminated
Lawsuits
9
What their own earnings claim actually says
Discloses only average/median revenue ($1.59M avg) for 56 travel center/gas-convenience locations, excluding 950 freestanding units (majority of system). No expenses, margins, or profit data provided. Severe cherry-picking by location type.
Honesty grade D: the disclosed numbers are incomplete or framed to look better than an owner's real take-home.
Failure & turnover reality (Item 20)
34 ceased operations in FY2025; franchised units dropped 32 net; dual-concept restaurants collapsed by 155 units.
Legal history (Item 3)
9 matters disclosed.
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The franchisor won't put real owner profit in writing. We do — reconstructed from their own FDD.
Franchisor's framing: Discloses only average/median revenue ($1.59M avg) for 56 travel center/gas-convenience locatio…
🔒 Real estimated owner take-home (low / median / high) — unlocked in the report
Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
Break-even timeline + cash-on-cash ROI on your investment
Full fee stack + required-purchase markups
Decoded real failure / closure rate
How it ranks vs comparable franchises
Validation-call playbook — who to call + the exact questions
The FDD lists a total initial investment of about $688,000–$1,143,000, including a $25,000 initial franchise fee.
How much do Carl's Jr. franchise owners make?
Discloses only average/median revenue ($1.59M avg) for 56 travel center/gas-convenience locations, excluding 950 freestanding units (majority of system). No expenses, margins, or profit data provided. Severe cherry-picking by location type. We grade this disclosure D for honesty.
What is the Carl's Jr. franchise failure rate?
34 ceased operations in FY2025; franchised units dropped 32 net; dual-concept restaurants collapsed by 155 units.
Is a Carl's Jr. franchise worth it?
It depends on the numbers, not the pitch. Carl's Jr. scores D on disclosure honesty, carries about 10% of sales in ongoing fees, and discloses 9 legal matters. Get the real owner take-home before you sign.
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Source: MN CARDS 35314-202601-02 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Carl's Jr. or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.