Brand Dossier

Carl's Jr.

FDD-based analysis. Item-level data. No franchisor input.

Rank #229 on Entrepreneur 2026FoodFDD issued May 24, 2025, as amended January 23, 2026
Ranking ContextRanking from Entrepreneur Media's 2026 Franchise 500. Zorzee is independent and not affiliated with Entrepreneur Media.
Source File2024 CJR-NT Non-Traditional Franchise Disclosure Document. Measurement period: Item 19 FY25 Period: Jan 30, 2024 - Jan 27, 2025 (53 weeks); Item 20 fiscal years 2023-2025 (FY end last Monday in January).
About the Brand

About Carl's Jr.

Carl's Jr. franchises quick service restaurants offering a limited menu of breakfast, lunch, and dinner items featuring charbroiled 100% Black Angus Thickburger sandwiches, Hand-Breaded Chicken Tenders, Made from Scratch Biscuits, and other related quick serve menu items. This particular franchise format operates from a Travel Center Location, a facility off an interstate or limited access highway that focuses on services to the trucking industry such as fuel, showers, and truck parking, or from a Gas and Convenience Location, a facility focused on non-commercial fuel service and convenience items including freshly made foods, with restaurants either newly built or converted from an existing quick service restaurant. Some Carl's Jr. restaurants operate as Dual Concept Restaurants that also offer Green Burrito Mexican food products, and the brand competes against national and regional quick service chains, fast-casual and casual-dining restaurants, delicatessens, supermarkets, coffee shops, and convenience stores.

Source: Entrepreneur 2026 ranking/profile data and Franchise Disclosure Document, rewritten by Zorzee

Investment Summary

The Numbers At a Glance

Total Investment Range
$57,000 to $97,000
FDD Item 7
Franchise Fee
$25,000
Development fee: $10,000 per Franchised Restaurant under a Development Agreement for 3 or more Travel Center / Gas and Convenience restaurants (includes the CJR 2024 Travel Center Development Incentive Program); non-refundable, credited against the Initial Franchise Fee at each restaurant's opening.
FDD Item 5
Royalty + Fees
10%
~10%-11% of Gross Sales currently (4%-5% royalty + 6% APO), plus per-period fees (Star University access ~$14/fiscal...
FDD Item 6
Earnings Claim
Pro exclusive
The disclosed sales or revenue metric, sample, range, and read are included in Pro.
FDD Item 19

Every value here comes straight from the FDD; anything not yet source-verified stays blank rather than estimated. The Pro figures and full interpretation unlock with a Pro membership.

The FDD Data Table

Everything the 2026 Filing Discloses

Every data point Zorzee tracks for this brand, in FDD Item order. Missing source data stays blank; Pro-only interpretation remains locked.

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ItemData PointValueSource
Item 3Litigation Actions (total) 9 actions disclosed FDD Item 3
Item 5Initial Franchise Fee The Initial Franchise Fee is $25,000. FDD Item 5
Item 5Development Fee $10,000 per Franchised Restaurant under a Development Agreement for 3 or more Travel Center / Gas and Convenience restaurants (includes the CJR 2024 Travel Center Development Incentive Program); non-refundable, credited against the Initial Franchise Fee at each restaurant's opening. FDD Item 5
Item 6Royalty Fee Royalty 4%-5% of Gross Sales, due within 10 calendar days after each fiscal week. FDD Item 6
Item 6National Media Fund Pro FDD Item 6
Item 6Corporate Ad & Development Fund Pro FDD Item 6
Item 6Total Ongoing Fee Burden Pro Calculated (Item 6)
Item 7Total Investment (low) $57,000 FDD Item 7
Item 7Total Investment (high) $97,000 FDD Item 7
Item 8Required Purchases (food/supplies) Pro FDD Item 8
Item 11Franchisor Assistance Pro FDD Item 11
Item 12Exclusive Territory Pro FDD Item 12
Item 12Territory Size Pro FDD Item 12
Item 15Operating Participation Pro FDD Item 15
Item 17Initial Term Length Pro FDD Item 17(a)
Item 17Renewal Terms Pro FDD Item 17(b)-(c)
Item 17Required Remodel at Renewal Pro FDD Item 17(c)
Item 17Termination Triggers Pro FDD Item 17(f)-(h)
Item 17Transfer Fee Pro FDD Item 17(m), Item 6
Item 17ROFR Provisions Pro FDD Item 17(n)
Item 17Post-Termination Non-Compete Pro FDD Item 17(r)
Item 19Revenue Metric Disclosed Pro FDD Item 19
Item 20Total Franchised Units (2025) 982 FDD Item 20
Item 20Company-Owned Units (2025) 50 FDD Item 20
Item 20Total System Net Unit Growth (YoY) -31 FDD Item 20
Item 20Terminations Pro FDD Item 20
Item 20Agreements Signed, Not Yet Open Pro FDD Item 20
Item 21Audited Financials Pro FDD Item 21
Pro Data Points Locked
The free table maps every data point to its FDD source. Pro fills in the values and interpretation that require the full read.
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The Signal Tracker

Five Signals From the 2026 Filing

Each signal turns one part of the filing into a read a buyer can act on. Strength means the disclosed data is favorable. In Line means it is typical for the category. Deal-Specific means the term is populated but you still have to model it against your own deal. Concern means the disclosed data is a real risk. The read is free. The reasoning behind it is the Pro read.

Fee Structure
In Line
FDD Item 6
The Pro Read

Item 6 sets a royalty of four to five percent of Gross Sales plus an advertising obligation currently at six percent and capped at seven percent, a combined ongoing marketing-and-royalty load that is typical for a national quick-service brand.

Unit Economics
Strength
FDD Item 19
The Pro Read

Item 19 discloses average and median revenue, the high, the low, and the share above average for the exact non-traditional format being offered, and the average and median sit close together above one and a half million dollars.

Litigation History
In Line
FDD Item 3
The Pro Read

FDD Item 3 discloses 9 actions. Case names, allegations, procedural posture, and source quotes are locked in Pro.

Operator Validation
Concern
FDD Item 20
The Pro Read

Item 20 shows a Carl's Jr. system that has stopped growing and turned negative, with total outlets slipping from 1,069 to 1,063 to 1,032 across 2023 to 2025 and only five signed agreements not yet open.

Term & Exit Terms
Deal-Specific
FDD Item 17
The Pro Read

Item 17 gives a long twenty-year initial term with a single renewal of ten or five years, a franchisor right to match any sale offer, a franchisor option to buy the assets at exit, and a post-term non-compete.

Five Reads In. The Reasoning Is Locked.
You can see where each signal lands. Pro gives you the why: the math, the source detail, and what to validate before you act.
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Item 19: Earnings Disclosure

What the Earnings Claim Says, and What It Does Not

Item 19 earnings data is disclosed for Carl's Jr.. The unit sales or revenue metric itself remains locked in Pro; the caution below stays free.

What the Claim Discloses
Disclosed Sales or Revenue Metric
Pro
Median Unit Metric
Pro
Sample Size & Coverage
Pro
High / Low Range
Pro
Percent Meeting or Beating the Average
Pro
What the Disclosure Excludes
Pro
What the Number Doesn't Tell You
Free, because misreading Item 19 is one of the costliest mistakes a first-time buyer can make.
  • Item 19 reports the disclosed sales or revenue metric. That is not profit, and not a forecast of what you would personally take home.
  • An average and a median are not the same number. Know which you are shown and how far apart they sit.
  • What reaches you is whatever survives operating costs and debt service. Item 19 never shows that figure.
Earnings Read Locked
Pro turns the disclosed fields into a read: whether the average is trustworthy, what the disclosure leaves out, and the year-one revenue number Zorzee would underwrite.
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Unit Count and Trajectory

A System That Contracted

Total Units
1032
Latest sourced FDD year
Franchised
982
FDD Item 20
Company-Owned
50
FDD Item 20
Total System Net Change (YoY)
-31
Latest total-system change
Total System Units, Latest Available FDD Years
1,069
2023
1,063
2024
1,032
2025

Carl's Jr. trajectory is shown only where source-backed. Missing Item 20 fields stay blank inside the locked layout instead of removing the section.

Source: FDD Item 20 where present. Total system units, franchised plus company-owned. Not financial advice.

Beyond the Net Number
A net unit count is not the same as healthy stores. Pro breaks out openings, closures, terminations, and what the trajectory signals.
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Litigation History

What FDD Item 3 Discloses

9 actions disclosed in FDD Item 3. Case-level detail remains locked in Pro.

Case 01
Item 3 action disclosed
Case-level detail locked in Pro
The Read · Pro
Case 02
Item 3 action disclosed
Case-level detail locked in Pro
The Read · Pro
Case 03
Item 3 action disclosed
Case-level detail locked in Pro
The Read · Pro
What a Litigation Count Doesn't Tell You
Free, because a raw lawsuit count is one of the most misread lines in any FDD.
  • A count means nothing without scale and time. Always compare it to system size and years covered.
  • The pattern matters more than the total. Repeated allegations matter more than isolated disputes.
  • Concluded and open matters are not the same weight. Open matters require different diligence than old resolved matters.
Litigation Read Locked
Pro gives the case-by-case read: allegations, status, scale context, and whether any pattern matters before signing.
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Editorial Analysis

The Zorzee Read

The Zorzee Take
The editor's synthesis: what the filing actually means once the numbers, diligence, and operator reality are weighed against each other. The Take names what matters, what does not, and what must be validated before any decision.
The Read · Pro
The Inversion
Charlie Munger's rule: to understand a thing, study how it fails. Zorzee stress-tests every brand against forecasting, site selection, management depth, and exit math. The framework is free. Which modes bite hardest for this brand, and the fix for each, is the read.
The Failure-Mode Read · Pro
The Editorial Read Is Locked
Pro unlocks the full Zorzee read on Carl's Jr.: the editorial synthesis, the math behind the numbers, and the failure modes the filing reveals. Zorzee briefs the decision; you make it.
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Zorzee editorial. Independent analysis. No franchisor review or approval. Not financial advice.

The Decision

You've Seen the Filing. The Read Is Still the Missing Piece.

The filing tells you what Carl's Jr. costs to open. Pro adds the read on whether the numbers work for you, in your market, and whether this brand is a business or a job you bought.

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This Dossier
  • The full read behind all five Signal Tracker verdicts
  • Pro FDD data points from fee burden through Item 17 and audited financials
  • The Item 19 earnings read where disclosed
  • The litigation and system-health read
  • The Zorzee Take and failure-mode analysis
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