For a traditional format Carls restaurant, what is the estimated range for building costs?
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. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 31–36)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the estimated cost for the building itself ranges from $577,500 to $808,935. This figure is part of the overall build-out costs for a free-standing restaurant. It's important to note that this cost includes HVAC installation but does not account for adding a cash window to a single or double drive-through lane, which could add an additional $65,000 to $115,000 to the cost.
This estimate is specifically for the building structure and includes site preparation. However, it does not cover other significant expenses like site improvements (fill, compaction, parking, landscaping, utilities), soft costs (architect fees, permits, utility connection fees), equipment, or signage. These additional costs are listed separately in the FDD.
Prospective franchisees should be aware that these figures are estimates and can vary based on market conditions, material availability, and the restaurant's geographic location. It is crucial to consult with contractors, architects, and local regulatory agencies to obtain accurate quotes and understand potential off-site costs like intersection improvements or street widening, which can significantly impact the overall investment.
Given the wide range of potential costs and the various factors that can influence them, it is advisable for potential Carls franchisees to conduct thorough due diligence and seek professional advice to develop a realistic budget for their specific location and restaurant design.