Carl's Jr. Franchise Cost and Profits in 2026

By FDDIQ Research Team | April 2026

Based on 2024 FDD Filing

Quick Summary

$25,000

Franchise Fee

$2.3M

Midpoint Investment

10.0%

Total Fees

$1.3M

Median Revenue

-5

Net Closed

Cost Breakdown

Fee	Amount
Franchise Fee	$25,000
Total Investment Range	$1.5M - $3.2M
Midpoint Investment	$2.3M
Royalty Rate	4.0%
Advertising Fund	6.0%
Total Ongoing Fees	10.0%

Revenue and Profit Analysis

The median Carl's Jr. franchise generates $1.3M in annual revenue. With estimated margins of 13%, that is approximately $174,833 in annual EBITDA.

Revenue per dollar invested: 0.58x.

Unit Count

Carl's Jr. has 1,018 franchised units. Lost 5 net units (-0.5% decline).

SBA Loan Performance

SBA default rate: 0.0% across 4 loans. This is below the franchise industry average (~7-8%).

Key Risk Factors

Declining unit count (5 net closures)

Frequently Asked Questions

How much does a Carl's Jr. franchise cost?

A Carl's Jr. franchise requires a $25,000 franchise fee with total investment ranging from $1.5M to $3.2M. The midpoint investment is approximately $2.3M.

How much do Carl's Jr. franchise owners make?

Based on the most recent FDD, the median Carl's Jr. location generates $1.3M in annual revenue. With estimated industry margins of 13%, that translates to approximately $174,833 in EBITDA before debt service.

What is the Carl's Jr. royalty rate?

Carl's Jr. charges a 4% royalty on gross sales plus a 6.0% advertising fund, for a total ongoing fee burden of 10.0%.

Is a Carl's Jr. franchise worth it?

Whether Carl's Jr. is worth it depends on your market, experience, and financial goals. Key concerns include declining unit count (5 net closures). The brand has been contracting with 5 net closures. The SBA loan default rate is 0.0%. Review the latest FDD thoroughly and validate with existing franchisees before investing.

What is the Carl's Jr. franchise SBA loan default rate?

Based on SBA loan data, Carl's Jr. has a 0.0% default rate across 4 loans. This is below the overall franchise industry average.

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