What is the estimated low and high range for soft 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 initial investment for soft costs ranges from $5,000 to $25,000 for a restaurant located at a Travel Center or Gas and Convenience Location. These soft costs are paid to vendors and third parties as arranged and incurred.
The FDD does not specify exactly what these soft costs include, but Item 7 does provide context for other costs in the initial investment. It is important to note that the low end of the estimate assumes that certain items are already existing in the Travel Center or Gas and Convenience Location.
Prospective franchisees should clarify with Carls Jr. what specific expenses are included in the "Soft Costs" category to understand how this range applies to their specific location and circumstances. Understanding the breakdown of these costs will allow for more accurate financial planning.