What is the estimated low and high range for equipment costs for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Amount | High Amount | Method of Payment (2) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Fees to CJR: | |||||
| Initial Franchise Fee (3) | $25,000 | $25,000 | Lump sum or installments | See Item 5 | CJR |
| Opening Training | $32,000 | $72,000 | As incurred | See Item 5 | Vendors, CJR |
| Support Team Fee (3) | |||||
| Total Fees to CJR | $57,000 | $97,000 | |||
| Build-Out Costs: | |||||
| Point of Sale System | $55,000 | $72,000 | Vendors, CJR and | ||
| (4) | third parties | ||||
| Soft Costs (5) | $5,000 | $25,000 | As arranged | As incurred | Vendors and third parties |
| Equipment (4) | $350,000 | $540,000 | As arranged | As incurred | Vendors, CJR |
| Signage (6) | $15,000 | $55,000 | As arranged | As incurred | Vendors and third parties |
| Total Build-Out | $425,000 | $692,000 | |||
| Costs | |||||
| Preliminary Operating Expenses: | |||||
| Initial Training (7) | $20,000 | $60,000 | As arranged | As incurred | Third parties |
| Pre-Opening Costs (8) | $26,000 | $44,000 | As arranged | As incurred | Vendors, CJR |
| Additional Funds - | $160,000 | $250,000 | As arranged | As incurred | Vendors, CJR |
| 3 months (9) | |||||
| Total Preliminary | $206,000 | $354,000 | |||
| Operating Expenses | |||||
| TOTAL | $688,000 $1,143,000 | ||||
| ESTIMATED | |||||
| INITIAL | |||||
| INVESTMENT (10) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 35–37)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, the estimated cost for equipment ranges from $350,000 to $540,000 for a restaurant located at a Travel Center Location or Gas and Convenience Location. These costs are paid as arranged and as incurred to vendors and to CJR. Item 4 specifies that franchisees must purchase certain items of furniture, fixtures, equipment, the point of sale system, and smallwares.
The low end of the equipment cost assumes that certain items such as furniture and seating, trash cans, décor, lighting, condiment and beverage stations, flooring, ceiling and wall finishes and restroom fixtures are common use items already existing in the Travel Center Location or Gas and Convenience Location. The high end of these figures also includes the cost of a catalytic converter for the charbroiler, which is approximately $1,558 if required.
Prospective franchisees should carefully consider these equipment costs when evaluating the overall financial investment required to open a Carls Jr. franchise. It is important to confirm with Carls Jr. and potential vendors exactly what equipment is included in these estimates and to obtain detailed quotes to ensure accurate budgeting. Additionally, franchisees may explore options for leasing or financing equipment to potentially reduce the initial capital outlay, keeping in mind that a down payment of up to 25% may be required.