Across all states, how many Carls Jr. restaurants ceased operations for other reasons in 2025?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Restaurants at Start of the Year | Restaurants Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations – Other Reasons | Restaurants at End of the Year |
|---|---|---|---|---|---|---|---|---|
| WY | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 | |
| 2025 | 3 | 0 | 0 | 0 | 0 | 0 | 3 | |
| TOTAL | 2023 | 1018 | 6 | 0 | 0 | 0 | 4 | 1020 |
| 2024 | 1020 | 9 | 1 | 1 | 1 | 12 | 1014 | |
| 2025 | 1014 | 7 | 0 | 4 | 1 | 34 | 982 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 68–75)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, a total of 34 restaurants ceased operations for reasons other than terminations, non-renewals, or reacquisition by the franchisor. This figure is derived from a table that summarizes outlet information across various states. The table includes a column specifically for 'Ceased Operations – Other Reasons,' which tallies such closures for each state and year. The total for 2025 is listed at the bottom of the table.
This number is a significant increase from previous years. In 2023, only 4 restaurants ceased operations for other reasons, and in 2024, that number was 12. The substantial jump to 34 in 2025 could indicate underlying issues within the franchise system that prospective franchisees should investigate. These issues could range from economic factors affecting specific locations to internal operational challenges.
It is important to note that the FDD specifies that the fiscal year runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year. Therefore, the 2025 data reflects closures occurring during that specific fiscal period. A prospective franchisee should carefully review the list of locations that ceased operations, which is included as Exhibit H to the FDD, and speak with current and former franchisees to understand the reasons behind these closures. Understanding the factors contributing to these closures is crucial for assessing the risks and opportunities associated with investing in a Carls Jr. franchise.