Is Puerto Rico considered an international location for Carls Jr. restaurants?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, as of January 27, 2025, there were the following international franchised Carl's Jr. Restaurants: American Samoa – 1; Australia – 28; Cambodia – 6; Canada – 18; Chile – 28; Denmark – 16; Dominican Republic – 1; Ecuador – 26; France – 6; Guatemala – 4; India – 3; Japan – 4; Malaysia – 5; Mexico – 408; New Zealand – 18; Nicaragua – 4; Panama – 12; People's Republic of China – 4; Puerto Rico – 2; Russia – 17; Singapore – 4; Spain – 44; Switzerland – 3; and Turkey – 22. (American Samoa and Puerto Rico are considered to be international locations even though they are U.S. territories.) We do not engage in any other business or offer franchises in any other line of business.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–20)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Puerto Rico is considered an international location, despite being a U.S. territory. As of January 27, 2025, there were 2 franchised Carls Jr. restaurants in Puerto Rico. This designation as an international location may impact various aspects of the franchise agreement, such as fees, support, and operational requirements, which may differ from those of domestic U.S. locations.
For a prospective franchisee, understanding this distinction is crucial. While Puerto Rico operates under U.S. laws and currency, Carls Jr. categorizes it as international, which could mean different supply chain logistics, marketing strategies tailored to local preferences, and potentially different levels of corporate support compared to mainland U.S. franchises. Franchisees should clarify with Carls Jr. what specific differences apply to international locations like Puerto Rico.
This international designation could also affect the financial aspects of operating a Carls Jr. franchise in Puerto Rico. Royalty fees, marketing contributions, and other fees might be structured differently than for domestic franchises. Additionally, the availability of financing and insurance options could vary. It is important for potential franchisees to investigate these factors thoroughly to assess the financial viability of a Carls Jr. franchise in Puerto Rico.
In summary, while Puerto Rico is a U.S. territory, Carls Jr. treats it as an international location for franchising purposes. Prospective franchisees should carefully examine the implications of this designation on operational support, financial obligations, and overall business strategy to ensure they are prepared for the unique aspects of operating a Carls Jr. restaurant in Puerto Rico.