What am I responsible for developing for my franchised Carl's Jr. restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for developing your own business plan for your franchised restaurant, including capital budgets, financial statements, projections and other elements appropriate to your particular circumstances. We encourage you to consult with your own accounting, business and legal advisors and to make necessary allowances for changes in financial results to income, expenses or both. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised restaurant. Franchisees or former franchisees listed in the disclosure document may be one source of this information.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 66–68)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, as a franchisee, you are responsible for developing your own business plan for your franchised restaurant. This includes creating capital budgets, financial statements, projections, and other elements that are appropriate for your specific circumstances.
Carls Jr. encourages you to consult with accounting, business, and legal advisors to assist in the development of your business plan. It is important to make allowances for potential changes in financial results, including income and expenses. You should also conduct an independent investigation of the costs and expenses you will incur while operating your Carls Jr. franchise. The FDD suggests that current and former franchisees can be a source of this information.
While Carls Jr. provides a financial performance representation in Item 19, it emphasizes that you are ultimately responsible for your restaurant's financial performance and business planning. This is a common practice in franchising, as each location can have unique factors influencing its success. Developing a comprehensive business plan is crucial for understanding the potential risks and rewards of investing in a Carls Jr. franchise.