Franchise Deep Dive: Carl’s Jr.’s Franchise Costs, Fees, Profit and Data

The West-coast favorite has over a thousand locations around the world.

By Victoria CampisiStaff Writer

Updated 7:07AM • 02/09/23

LAST UPDATED: 1/2024

FRANCHISE WEBSITE: https://carlsjrfranchising.com/franchising.php

NUMBER OF LOCATIONS: 1,690+

REPORTED COST TO GET IN: $$1,499,000 - $2,228,000

REPORTED ROI (Item 19): N/A

Founded in 1941 by Carl N. Karcher, Carl's Jr. has been a West Coast staple for more than 75 years. Using just $15 in savings and borrowing $311 on their Plymouth automobile, Karcher and his wife, Margaret, purchased a single hot dog cart in 1941 in Los Angeles. Since then, the small business has grown into a beloved quick-service franchise brand with nearly 2,000 locations globally.

Carl’s Jr. is known for its burgers, such as the Western Bacon Cheeseburger, the Super Star hamburger and its latest innovation, the Beyond Famous Star with Cheese. Other favorites include Hand-Breaded Chicken Tenders, Made From Scratch Biscuits, charbroiled chicken sandwiches and Hand-Scooped Ice Cream Shakes & Malts.

The brand is operated by parent company CKE Restaurant Holdings, which also owns the fast-food chain Hardee’s.

How Many Carl’s Jr. Locations Are There?

Currently, there are over 1,690 Carl’s Jr. locations across the Western United States, as well as in 28 countries internationally. There are also over 300 dual-branded Carl’s Jr./Green Burrito units. California has the most locations in the country, with 658 stores–62% of all locations in the United States. The brand celebrated the opening of its 1,000th international location in mid-2021 while reporting its highest-ever per-store sales.

In 2023, the franchise announced it was coming to the east coast with an opening in South Florida. The new location is in partnership with RSMG Holding LLC and Retail & Food International Brand.

What Is the Business Model?

According to the Carl’s Jr. franchise development page, the brand prefers multi-unit agreements, but there are circumstances under which it would consider smaller (one- or two-unit) agreements.

Carl's Jr. offers multi-unit development agreements for specific geographic areas. The terms of the development agreement (including the number of units to build and the necessary time frame within which to have them open) are determined by the characteristics of the area in question. Factors that are considered include:

Potential for the area to support new restaurants
The number of restaurants stipulated in the agreement
The degree to which the specific area or municipality is conducive to development.

Carl's Jr. determines an area's potential based on population, demographics, competition and other factors. Franchisees may also open a Green Burrito Dual Concept Restaurant, as well as locations inside or adjoining in a gas station or convenience store.

How Much Can Carl’s Jr. Franchise Owners Make?

How much Carl’s Jr. franchise owners make is not publicly reported. The brand encourages prospective franchisees to conduct significant due diligence prior to committing to any new business venture.

According to the franchise development page’s FAQs, existing Carl's Jr. franchisees are “an excellent source for answering questions about operations, marketing, finances, etc.” The company notes that the amount of profit or loss is dependent on a number of factors, including the franchisee's ability to manage the business, drive sales volume, and control operating costs. Names and phone numbers of existing franchisees are available by request.

How Much Does It Cost To Open a Carl’s Jr.?

The minimum financials required to open a Carl’s Jr. location include:

Net Worth: $1,000,000
Liquid Assets: $300,000

The total estimated cost to open a Carl’s Jr. location is $1,499,000–$2,228,000.

Costs include:

Initial Franchise Fee: $25,000 to $35,000 dependent on the number of restaurants in operation.
Development Fee: $10,000 per store
Opening Training Support Team Fee: $10,000
Building: $575,000–$665,000
Site Improvements: $250,000–$415,000
Soft Costs: $90,000–$120,000
Equipment: $357,000–$410,000
Signage: $75,000–$110,000
POS System: $35,000–$45,000
Initial Training: $20,000–$60,000
Pre-Opening Costs: $8,000–$23,000
Additional Funds - 3 Months: $160,000–$250,000

Franchisees also pay royalties of 4% of gross sales and up to 7% toward advertising. The advertising and promotions obligation is divided between the Carl's Jr. National Advertising Fund, Regional Co-Op, and local store marketing.

What Is the Franchise Fee for Carl’s Jr.?

Carl's Jr. has a franchise fee of $25,000 per store with incentives for multiple locations and a development fee of $10,000 per store.

Who Is the Leadership of Carl’s Jr. (CKE Restaurants)?

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