How many Carls Jr. restaurants were reacquired from franchisees in California during 2025?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Restaurants at Start of the Year | Restaurants Opened | Restaurants Reacquired from Franchisees | Restaurants Closed | Restaurants Sold to Franchisees | Restaurants at End of the Year |
|---|---|---|---|---|---|---|---|
| CA | 2023 | 48 | 1 | 0 | 0 | 0 | 49 |
| 2024 | 49 | 0 | 0 | 0 | 0 | 49 | |
| 2025 | 49 | 0 | 1 | 0 | 0 | 50 | |
| TOTAL | 2023 | 48 | 1 | 0 | 0 | 0 | 49 |
| 2024 | 49 | 0 | 0 | 0 | 0 | 49 | |
| 2025 | 49 | 0 | 1 | 0 | 0 | 50 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 68–75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, one restaurant in California was reacquired from a franchisee during the 2025 fiscal year. The fiscal year runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year. At the start of 2025, there were 49 restaurants in California. After reacquiring one restaurant from a franchisee, there were 50 restaurants at the end of the year.
Reacquisition of a franchised unit by the franchisor can occur for various reasons, such as the franchisee's failure to meet performance standards, a mutual agreement to terminate the franchise agreement, or strategic decisions by Carls Jr. to consolidate operations. The FDD does not specify the reason for the reacquisition.
For a prospective franchisee, this information is relevant in understanding the dynamics of the Carls Jr. franchise system. While the reacquisition of a single unit may not be alarming, it prompts further investigation into the reasons behind such actions and the overall health and stability of the franchise network in California. It would be prudent for a potential franchisee to inquire about the circumstances surrounding the reacquisition and to assess whether any similar factors could affect their own franchise in the future.