In 2025, how many Carls Jr. franchises were reacquired by the franchisor?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Restaurants at Start of the Year | Restaurants Opened | Restaurants Reacquired from Franchisees | Restaurants Closed | Restaurants Sold to Franchisees | Restaurants at End of the Year |
|---|---|---|---|---|---|---|---|
| CA | 2023 | 48 | 1 | 0 | 0 | 0 | 49 |
| 2024 | 49 | 0 | 0 | 0 | 0 | 49 | |
| 2025 | 49 | 0 | 1 | 0 | 0 | 50 | |
| TOTAL | 2023 | 48 | 1 | 0 | 0 | 0 | 49 |
| 2024 | 49 | 0 | 0 | 0 | 0 | 49 | |
| 2025 | 49 | 0 | 1 | 0 | 0 | 50 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 68–75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the total number of franchised restaurants reacquired by Carls Jr. in 2025 was one. This reacquisition occurred in California.
Franchise reacquisition can occur for various reasons, such as the franchisee's failure to meet brand standards, financial difficulties, or a mutual agreement between the franchisee and Carls Jr. for the company to take over operations. The FDD provides data on reacquired stores to give potential franchisees insight into the stability and changes within the franchise system.
For a prospective franchisee, a low number of reacquired franchises, such as the one reported for Carls Jr. in 2025, could be seen as a positive indicator. It suggests that franchisees are generally successful and that the franchisor is not frequently taking back restaurants. However, it is essential to consider this number in conjunction with other factors, such as terminations and non-renewals, to get a comprehensive understanding of franchisee performance and turnover within the Carls Jr. system.
It's also worth noting that while the overall number of reacquired stores was one, this only reflects the number of locations reacquired by the franchisor during the 2025 fiscal year. It does not reflect the total number of company-owned stores in the Carls Jr. system, as some company-owned stores may have been established directly by the company rather than through reacquisition.