factual

Does the Carls Jr. revenue calculation include revenue from CJR-approved promotional items?

Q: Does the Carls Jr. revenue calculation include revenue from CJR-approved promotional items?

- 2. Revenue. Revenue includes all revenue from the sale of all services and products (except CJRapproved promotional items) and all other income of every kind and nature (excluding revenue from the sale of stored value gift cards or gift certificates but including revenue when gift certificates are redeemed or stored value gift cards are debited), whether for cash or credit and regardless of collection in the case of credit; provided, however, that Revenue does not include sales taxes or other taxes collected from customers by you for transmittal to the appropriate taxing authority. Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 66–68)

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

1. Revenue. Revenue includes all revenue from the sale of all services and products (except CJRapproved promotional items) and all other income of every kind and nature (excluding revenue from the sale of stored value gift cards or gift certificates but including revenue when gift certificates are redeemed or stored value gift cards are debited), whether for cash or credit and regardless of collection in the case of credit; provided, however, that Revenue does not include sales taxes or other taxes collected from customers by you for transmittal to the appropriate taxing authority.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 66–68)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, the revenue calculation for the financial performance representation excludes revenue from CJR-approved promotional items. The financial performance representation includes the average revenue for 56 Carl's Jr. Travel Center and Gas and Convenience Center Restaurants that were operated by franchisees during the 53-week period from January 30, 2024, to January 27, 2025. At the end of that period, Carls Jr. had 1,571 franchised and company-operated restaurants open in the United States.

The financial performance representation specifically excludes revenue from CJR-approved promotional items. It includes revenue from the sale of all other services and products, as well as all other income, excluding revenue from the sale of stored value gift cards or gift certificates, but including revenue when gift certificates are redeemed or stored value gift cards are debited. The average revenue for these restaurants was $1,586,460, while the median revenue was $1,559,367.

This means that a prospective Carls Jr. franchisee should not expect revenue from CJR-approved promotional items to be included in the financial performance figures presented in Item 19. This is an important distinction, as it could affect the franchisee's overall revenue projections. The FDD encourages franchisees to develop their own business plan and consult with advisors to make necessary allowances for changes in financial results.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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