What is a 'Dual Concept Restaurant' in the context of the Hardee's franchise, which is relevant to the Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
HR is a Delaware limited liability company formed on January 30, 2013, whose principal place of business is the same as ours. As of January 27, 2025, there were 202 company-operated Hardee's restaurants, and there were 1,369 domestic franchised Hardee's restaurants, including 129 Dual Concept restaurants. Dual Concept Restaurants are quick service Hardee's Restaurants that also offer certain Red Burrito Mexican food products. In addition, as of January 27, 2025, there were the following international franchised Hardee's Restaurants: Bahrain – 17; Egypt – 41; Iraq – 12; Jordan – 4; Kazakhstan – 19; Kenya – 1; Kuwait – 60; Oman – 13; Pakistan – 30; Palestine – 5; Qatar – 24; Saudi Arabia – 146; United Arab Emirates – 98; and Uzbekistan – 3. HR has not engaged in any other business or offered franchises in any other line of business.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–20)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a Dual Concept Restaurant, in the context of the Hardee's franchise, refers to a quick-service Hardee's restaurant that also offers certain Red Burrito Mexican food products. As of January 27, 2025, there were 129 Dual Concept Hardee's restaurants domestically. This is relevant to Carls Jr. because Hardee's Restaurants LLC ("HR") is a direct affiliate that offers franchises or provides products or services to Carls Jr. franchisees.
Carl Karcher Enterprises LLC (CKE), a predecessor to the current Carls Jr. franchisor, also offered franchises to operate Carl's Jr./Hardee's Dual Concept Restaurants from 1997 to 1998. Currently, Carls Jr. also offers Dual Concept Restaurants, which are quick service Carls Jr. Restaurants that also offer certain Green Burrito Mexican food products. As of January 27, 2025, there were 218 domestic franchised Carls Jr. Dual Concept restaurants.
For a prospective franchisee, understanding the dual concept is important because it represents a specific franchise model that combines two different food offerings under one roof. This model may offer potential benefits such as increased customer traffic, diversified revenue streams, and efficient use of space and resources. However, it also presents challenges such as managing a more complex menu, training staff in multiple cuisines, and maintaining consistent quality across both brands. A franchisee should carefully evaluate the potential benefits and challenges before investing in a dual-concept franchise.