Franchise Facts Report → brands → Carl's Jr
Carl's Jr franchise — is it worth it?
High risk Shrinking network Item 19 disclosed
Carl's Jr.
Everything below is free, read straight off Carl's Jr's registered filing, with where the numbers land against quick-service restaurant peers. Weighing Carl's Jr against other options? Get a free shortlist of franchises that fit your budget.
Figures above are as disclosed in Carl's Jr's most recent FDD (registered 2025). Source: Minnesota Dept. of Commerce — CARDS franchise registrations · filing 35313-202601-01 — check it yourself. See every other Minnesota-registered franchise.
Considering Carl's Jr? See what else fits your budget
Tell us your budget and the industries you're open to. We'll match you with 5–10 franchises whose own FDDs fit — ranked by earnings disclosure, growth and closure rate — and email you the list. Carl's Jr will be on it if it fits.
How much does a Carl's Jr franchise make?
Carl's Jr is one of the franchisors that answers this on the record: its most recent FDD makes an Item 19 financial performance representation — actual unit earnings figures, disclosed by the franchisor itself. The headline figure is $1,373,117 in average unit revenue — read it alongside what Item 19 says about which units it covers (often only mature or top-performing locations). See every quick-service restaurant brand that discloses earnings in the Fast food & quick-service restaurant franchises with disclosed Item 19 earnings ranking.
Carl's Jr franchise profit vs. revenue
Revenue is not profit. An Item 19 almost always reports sales — what a location takes in — not what an owner keeps. Out of that number come Carl's Jr's 4% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a Carl's Jr franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "Carl's Jr franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure. On $1,373,117 of revenue, a 4% royalty alone is about $54,925 a year before any other cost.
Carl's Jr lawsuits & legal history (FDD Item 3)
Carl's Jr's most recently filed Franchise Disclosure Document (2025) does disclose 7 legal proceedings in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against Carl's Jr itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. 4 of those proceedings were brought by franchisees against the franchisor — the split that actually matters, because franchisees suing their franchisor is the signal a buyer is looking for. Item 3 of the source FDD describes each case.
Carl's Jr closures & failure rate
Before you sign, Carl's Jr will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Carl's Jr's most recent filing shows, and whether it's normal for a quick-service restaurant of this kind.
The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Carl's Jr's latest tables show a shrinking franchised network — more units left than opened. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 2.9%, against a quick-service restaurant median of 2.9% — at or better than the category. Net franchised outlets moved -32 to 982 in the latest reported year.
Who owns Carl's Jr?
Carl's Jr's franchise is offered by CARL'S JR. RESTAURANTS LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2025), and the entity a franchisee actually signs with. That name comes straight off the filing at MN CARDS; it identifies the franchisor, not necessarily the ultimate parent company behind it. The same franchisor files separate FDDs for other brands, which is worth knowing — sibling brands share a franchise-support organization but disclose their own numbers:
Compare Carl's Jr head-to-head
Quick-service restaurant franchises at a similar investment level
Anyone weighing Carl's Jr is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.
Carl's Jr franchise — frequently asked
Who owns Carl's Jr — who is the franchisor?
Carl's Jr's most recently filed FDD (2025) names CARL'S JR. RESTAURANTS LLC as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. The same franchisor also files FDDs for Carl's Jr. (Nt). A registry filing names the franchisor, not necessarily its ultimate parent company.
How much does a Carl's Jr franchise cost?
Carl's Jr's most recently filed FDD (Item 7) puts the total estimated initial investment at $1,486,000 – $3,176,500, with an initial franchise fee of $25,000 and a 4% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. Against quick-service restaurant peers it sits in the bottom quartile (median $604,609).
How much profit does a Carl's Jr franchise make?
Carl's Jr discloses unit earnings in Item 19, but that figure is revenue — sales — not profit. Royalties (4% of gross for Carl's Jr), the ad fund, rent, payroll and supplies all come out of it, and no FDD discloses what an owner nets. Any Carl's Jr franchise profit number quoted elsewhere is an estimate. The headline figure Carl's Jr discloses is $1,373,117 in average unit revenue.
Does Carl's Jr disclose financial performance (Item 19)?
Yes — Carl's Jr reports unit-level earnings in Item 19. The headline figure is $1,373,117 in average unit revenue, as the franchisor states it.
Are there lawsuits against Carl's Jr?
Carl's Jr's most recently filed FDD (2025) discloses 7 legal proceedings in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against Carl's Jr itself, and a disclosure is not a finding of wrongdoing. 4 of the disclosed proceedings were brought by franchisees against the franchisor.
Is Carl's Jr a good franchise to buy?
Nobody can answer that from Carl's Jr's numbers alone — it comes down to how its investment, earnings, litigation and franchisee churn stack up against quick-service restaurant peers and against your own budget. Our read on this filing is high risk. Every figure behind that read is on this page for free. If you're comparing options, the free shortlist on this page matches you with 5–10 franchises that fit your budget and industry.
Get a free email when something changes on Carl's Jr or quick-service restaurant: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same state registries this page is built on.