What is the range of estimated costs for site improvements for a Carls restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 31–36)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, site improvement costs range from $110,000 to $605,000. These costs are considered part of the build-out expenses for establishing a new Carls restaurant. The payments are made in progress installments to the contractor as arranged.
Site improvements encompass various essential tasks necessary to prepare the location for the restaurant. These include providing fill and compaction to ensure a stable building foundation, constructing curb cuts for easy access, installing parking lot curbs, gutters, sidewalks, and drive-thru lanes to manage traffic flow. Landscaping and irrigation are also included to enhance the site's appearance, along with site electrical work and lighting for safety and visibility. Additionally, the installation of a grease interceptor and utility runs are factored into these costs.
Prospective franchisees should be aware that the actual costs may vary depending on the specific location and any unique requirements or challenges presented by the site. It is important to conduct thorough due diligence and obtain detailed quotes from contractors to accurately estimate the site improvement costs for a particular location. Franchisees should also consider potential off-site costs, such as intersection improvements or street widening, which can significantly impact the overall expenses.