What was the net change in the number of franchised Carls Jr. restaurants in 2024?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| Restaurant Type | Year | Restaurants at Start of the Year | Restaurants at End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2023 | 1018 | 1020 | +2 |
| 2024 | 1020 | 1014 | -6 | |
| 2025 | 1014 | 982 | -32 | |
| Company- | 2023 | 48 | 49 | +1 |
| Operated | ||||
| 2024 | 49 | 49 | 0 | |
| 2025 | 49 | 50 | +1 | |
| Total Outlets | 2023 | 1066 | 1069 | +3 |
| 2024 | 1069 | 1063 | -6 | |
| 2025 | 1063 | 1032 | -31 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 68–75)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, the net change in the number of franchised restaurants in 2024 was -6. This means that overall, the Carls Jr. franchise system had six fewer franchised locations at the end of 2024 compared to the beginning of the year. This number is derived from having 1020 franchised restaurants at the start of 2024 and 1014 at the end of the year.
This decrease in franchised units could be due to several factors, such as closures, terminations, or non-renewals of franchise agreements. It is important to note that this net change reflects the overall system performance and may not necessarily indicate the performance of individual franchise locations. Prospective franchisees should inquire about the reasons for any closures or terminations to better understand the health and stability of the franchise system.
It's also worth noting that the numbers provided in the FDD are as of the end of Carls Jr.'s fiscal year, which runs from the Tuesday subsequent to the last Monday in January through the last Monday in January of the next calendar year. This means that the 2024 data reflects changes occurring between late January 2024 and late January 2025. This information is crucial for understanding the timeline and context of the data presented.
Potential franchisees should carefully consider these trends and discuss them with the franchisor to gain a deeper understanding of the factors influencing the number of franchised Carls Jr. restaurants. Further investigation into the specific reasons behind the net change can provide valuable insights into the risks and opportunities associated with investing in a Carls Jr. franchise.