What is the estimated total initial investment range to open a Carls restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
u should review these figures carefully with a business advisor before making any decision to purchase the franchise. We do not offer any direct financing for any part of the initial investment.
YOUR ESTIMATED INITIAL INVESTMENT TO DEVELOP A NEW FRANCHISED RESTAURANT New Format (1)
| Type of Expenditure | Low Amount | High Amount | Method of Payment (2) | When Due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|---|
| Fees to CJR: | ||||||
| Initial Franchise Fee (3) | $25,000 | $25,000 | Lump sum | See Item 5 | CJR | |
| Opening Training Support | $30,000 | $74,000 | As incurred | See Item 5 | Vendors, CJR | |
| Team Fee (3) | ||||||
| Total Fees to CJR | $55,000 | $99,000 | ||||
| Build-Out Costs: | ||||||
| Real Property (4) | Variable | |||||
| Building (5) | $577,500 | $808,935 | Progress payments | As arranged | Contractor | |
| Site Improvements (6) | $110,000 | $605,000 | Progress Payments | As arranged | Contractor | |
| Soft Costs (7) | $55,000 | $236,500 | As arranged | As required | Architect, City/County Utilities, etc. | |
| Equipment (8) | $385,000 | $594,000 | As arranged | As incurred | Vendors | |
| Signage (9) | $55,000 | $104,500 | As arranged | As incurred | Vendors | |
| Point of Sale System (8) | $60,500 | $79,200 | As arranged | As incurred | Vendors, CJR | |
| Total Build-Out Costs | $1,243,000 | $2,428,135 | ||||
| Preliminary Operating | ||||||
| Expenses: | ||||||
| Initial Training (10) | $20,000 | $60,000 | As arranged | As incurred | Third parties | |
| Pre-Opening Costs (11) | $8,000 | $23,000 | As arranged | As incurred | Vendors | |
| Additional Funds - 3 months | $160,000 | $250,000 | As arranged | As incurred | Vendors, CJR | |
| (12) | ||||||
| Total Preliminary | $188,000 | $333,000 | ||||
| Operating Expenses | ||||||
| TOTAL ESTIMATED | $1,486,000 $2,860,135 | |||||
| INITIAL INVESTMENT | ||||||
| FOR A CARL’S JR. | ||||||
| RESTAURANT (13) |
NOTES
- (1) The table above reflects a low-high range of costs for each of the major costs categories of the initial investment for a new Franchised Restaurant located in a freestanding building that is approximately 2,200 square feet with a drive thru and full menu kitchen. The ranges listed are our best information to date but may vary depending on changes in market conditions, including availability of building materials, and the geographic area in which the Franchised Restaurant will be located.
- (2) Costs paid to CJR are not refundable. Whether any costs paid to third parties are refundable will vary based on the practice in the area where your Franchised Restaurant is located.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 31–36)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total estimated initial investment to open a Carls restaurant ranges from $1,486,000 to $3,176,500 for the New Format and $1,486,000 to $2,860,135 for the Traditional Format. This investment includes fees to CJR, build-out costs, and preliminary operating expenses.
The build-out costs for the New Format include real property, building, site improvements, soft costs, equipment, signage, and a point-of-sale system, totaling between $1,243,000 and $2,744,500. The build-out costs for the Traditional Format total between $1,243,000 and $2,428,135. Preliminary operating expenses, covering initial training, pre-opening costs, and additional funds for the first three months, range from $188,000 to $333,000 for both formats.
Prospective franchisees should note that the real property costs are variable and depend heavily on location. The initial franchise fee is $25,000, with an additional opening training support team fee ranging from $30,000 to $74,000. The FDD advises careful review of these figures with a business advisor before making a purchase decision. Carls does not offer direct financing for any part of the initial investment, so franchisees will need to secure their own funding.