Is Carls Jr.'s acceptance of a site a guarantee of a certain sales volume or profitability?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Our acceptance of one or more sites is not a representation or a promise by CJR that a Franchised Restaurant at an accepted site will achieve a certain sales volume or a certain level of profitability. Similarly, our acceptance of one or more sites and our refusal to accept other sites is not a representation or a promise that an accepted site will have a higher sales volume or be more profitable than a site which we did not accept. Our acceptance only indicates our willingness to be represented by you at that site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 42–55)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr.'s acceptance of a site for a franchised restaurant does not guarantee any specific sales volume or level of profitability. Carls Jr. states explicitly that site acceptance is not a representation or promise that the location will meet certain financial targets. Furthermore, the acceptance of one site over another does not indicate that the accepted site will necessarily perform better than a rejected one.
Carls Jr.'s acceptance of a site merely indicates their willingness for the franchisee to represent the brand at that particular location. The potential franchisee bears the responsibility of securing the site by either leasing or purchasing the property, typically within 6 to 9 months after site acceptance. Failure to finalize property control by this date can result in the withdrawal of site acceptance without notice.
This policy is typical in the franchise industry, where the success of a location depends on numerous factors beyond the franchisor's initial approval, including the franchisee's management skills, local market conditions, and operating costs. Prospective Carls Jr. franchisees should conduct their own thorough market research and financial analysis to determine the viability of any proposed location.