What is the initial franchise fee for a Carls Jr. restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
ill execute the form of Franchise Agreement in use at the time you begin to develop the Franchised Restaurant and the respective CJR 2024 Travel Center Development Incentive Program Addendum or 2024 DIP Addendum, if applicable.
Initial Franchise Fee
The Initial Franchise Fee is $25,000, although the balance of the Initial Franchise Fee due to CJR is reduced to $15,000 for a Franchised Restaurant developed pursuant to the terms of a Development Agreement, including any Conversion Restaurant. You must pay CJR the Initial Franchise Fee, less any Development Fee already paid, when you execute the Franchise Agreement. The Initial Franchise Fee is fully earned by CJR when paid, and it is not refundable. Under the D
Source: Item 5 — INITIAL FEES (FDD pages 26–28)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, the initial franchise fee is $25,000. However, for a franchise developed under a Development Agreement, including a Conversion Restaurant, the balance of the initial franchise fee due to CJR is reduced to $15,000. This initial fee is paid when the Franchise Agreement is executed.
Notably, the initial franchise fee is considered fully earned by Carls Jr. upon payment and is non-refundable. Furthermore, under the Development Agreement, Carls Jr. will waive the $15,000 initial franchise fee for any franchised restaurant that opens 6 months prior to the contractual opening date specified in the Development Agreement.
Prospective franchisees should be aware of these different scenarios and how they might impact their initial investment. It is important to discuss the specific terms and conditions related to the initial franchise fee with the franchisor to fully understand the financial obligations and potential waivers or reductions that may apply.