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Carl's Jr. Restaurants

2014 Franchise 500
#46
At a Glance

Products & Services: Burgers

Number of Locations: 1,400

Total Investment: $1.2M - $1.7M

Founded: 1945

Began Franchising: 1984

About Carl's Jr. Restaurants

In 1941, Carl N. Karcher and his wife Margaret took $15 in savings, borrowed another $311 on their car, and bought a hot dog cart in Los Angeles. They grew their business to four carts before opening the first Carl's Drive-In Barbecue in 1945 and adding hamburgers to the menu. The first Carl's Jr. locations-- so-named because they were smaller than the drive-ins-- opened in the 1950's. Today the company has locations throughout the West and Southwest, and is known for menu items such as its Six Dollar Burgers.

Franchise Units

Year U.S. Canadian International Company Owned
2013 706 6 260 428
2012 696 1 217 424
2011 684 1 169 425
2010 671 0 138 424
Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Alaska, Arizona, California, Colorado, Hawaii, Idaho, New Mexico, Nevada, Oklahoma, Oregon, Southwest, Texas, Utah, West, Washington.
Franchisor is seeking new units in Africa, Asia, Australia/New Zealand, Canada, Central America, Eastern Europe, Mexico, South America, Western Europe.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $1,196,500 - $1,739,400
Franchise Fee: $35,000
Ongoing Royalty Fee: 4%
Term of Franchise Agreement: 20 years, renewable
Veteran Incentives: 10% off franchise fee
Financial Requirements
Net Worth: $1,000,000
Liquid Cash Available: $300,000
Operations
100% of all franchisees own more than one unit. Absentee ownership of franchise is NOT allowed..
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at franchisee's location. 12 weeks of management training & at grand opening
Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperatives
Marketing Support: Co-op advertising, Ad slicks, National media, Regional advertising,

Franchise Ranking History

Franchise 500®: #46 (2014), #47 (2013), #47 (2012), #47 (2011), #52 (2010),
America's Top Global: #37 (2013), #43 (2012), #41 (2011), #45 (2010),