What was the total number of Carls Jr. restaurants operating in California at the start of 2024?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
sor or Their Affiliates) For Fiscal Years 2023-2025(1) (2) ***
| State | Year | Number of Transfers | |---|---|---| | CA | 2023 | 1 | | | 2024 | 0 | | | 2025 | 0 | | UT | 2023 | 1 | | | 2024 | 0 | | | 2025 | 0 | | TOTAL | 2023 | 2 | | | 2024 | 0 | | | 2025 | 0 | *The Restaurants included in this table are also included in the preceding table.
Table No. 3 Status of Franchised Restaurants For Fiscal Years 2023-2025(1) (2)
| State | Year | Restaurants at Start of the Year | Restaurants Opened | Terminations | Non- Renewals | Reacquired by Franchisor | Ceased Operations – Other Reasons | Restaurants at End of the Year |
|---|---|---|---|---|---|---|---|---|
| AK | 2023 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | |
| 2025 | 4 | 0 | 0 | 0 |
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, there were 662 total Carls Jr. restaurants operating in California at the start of 2024. This total is comprised of both franchised and company-operated restaurants. Specifically, there were 613 franchised restaurants and 49 company-operated restaurants.
For a prospective franchisee, this information is useful in understanding the existing market saturation and brand presence of Carls Jr. in California. The fact that there are both franchised and company-operated restaurants indicates that Carls Jr. has a vested interest in the California market. The number of company-operated restaurants can be seen as a sign of the brand's commitment to and confidence in the market.
However, it's important to note the changes in restaurant counts over the years. In 2024, there was a net decrease of 8 franchised restaurants and no change in company-operated restaurants. This suggests potential challenges or shifts in the California market that prospective franchisees should investigate further. Understanding the reasons behind these changes, such as market saturation, competition, or economic factors, is crucial for making an informed investment decision.
Overall, while a strong existing presence can be beneficial, prospective franchisees should conduct thorough due diligence to understand the dynamics of the California market and assess the potential for future growth and profitability. Reviewing the list of franchisee terminations and ceased operations, detailed in Exhibits H and I of the FDD, may provide additional insights into the challenges and opportunities within the Carls Jr. system.