What does it cost to start a Carl’s Jr? We reviewed the Franchise Disclosure Document (FDD) and found that the investment necessary for a newly developed restaurant ranges from approximately $1,585,000 to $2,143,000.
Here is how the initial investment breaks down:
Estimated Initial Investment
- Franchise Fee: $15,000 – $35,000
- Opening Training Support Team Fee: $0 – $10,000
- Real Property: Variable
- Building: $575,000 – $665,000
- Site Improvements: $250,000 – $415,000
- Soft Costs: $90,000 – $120,000
- Equipment: $357,000 – $410,000
- Signage: $75,000 – $110,000
- POS: $35,000 – $45,000
- Initial Training: $20,000 – $60,000
- Pre-Opening Costs: $8,000 – $23,000
- Additional Funds (3 Months): $160,000 – $250,000
- Total Estimated Cost: $1,585,000 – $2,143,000
Carl’s Jr Net Worth Requirement
Maybe you can find the money to build a new Carl’s Jr., but along with that Carl’s Jr. is also going to check out your net worth. The current net worth requirement to become a Carl’s Jr. franchisee is a liquidity requirement of $300,000 with net worth of $1,000,000.
Other Ongoing Costs
- Royalty: 4% of Gross Sales
- Advertising and promotion obligation: Up 7%. Currently at 6%