Carl's Jr. franchise startup costs run $1.41M–$2.24M for a premium QSR burger concept with 1,000+ US locations. Carl's Jr. and its sister brand Hardee's share CKE Restaurants infrastructure under Inspire Brands ownership, with Carl's Jr. dominant in the Western US.
Carl's Jr. is a premium QSR burger franchise founded by Carl Karcher in Los Angeles in 1941. The brand is owned by CKE Restaurants, a subsidiary of Roark Capital Group, which also owns Hardee's — the same menu concept under a different name in the Eastern US. Carl's Jr. operates 1,000+ US locations concentrated in the Western states — California, Nevada, Arizona, Utah, Colorado, and Texas. The brand's positioning is premium QSR: hand-scooped milkshakes, charbroiled beef patties, and indulgent menu items at a price point above traditional QSR. Drive-through is the primary format.
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Carl's Jr. franchise runs $1,410,000–$2,240,000. The premium QSR format with charbroil equipment and a milkshake program drives kitchen investment:
Carl's Jr. charges a 4% royalty on gross sales plus a 5% advertising fund contribution, for a combined 9% of gross sales. The 4% royalty is below the QSR category average, reflecting CKE's franchisee-first strategy. The 5% ad fund supports national and regional TV and digital campaigns. Technology and online ordering platform fees apply separately.
Carl's Jr. is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing structures at the $1.4M–$2.2M investment range:
Premium QSR burger concepts at the $1.4M–$2.2M investment range typically target break-even within 36–54 months. Carl's Jr.'s strong brand recognition in Western markets drives AUVs that support the investment range at established locations. The premium positioning — with an average check above traditional QSR — offsets lower traffic counts versus value-driven QSR competitors. Operators who execute the full menu program including the milkshake and premium burger lineup capture the highest average check.
Carl's Jr. suits experienced QSR operators with Western US market access and multi-unit management capability. The $1M+ net worth and $350K+ liquid capital requirements reflect the capital intensity of a drive-through premium QSR build. Operators with existing QSR real estate relationships and CKE or other premium QSR management experience execute the most successfully. The charbroil-forward kitchen program has specific equipment maintenance requirements that reward experienced kitchen operators.
ClearValue Lending works with premium QSR and burger franchise operators on SBA 7(a), SBA 504, equipment, and working capital financing. Apply for franchise financing at Find my match. Your file routes to one matched lender.
Carl's Jr. is on the SBA Franchise Directory, enabling expedited SBA loan eligibility review. At $1.41M–$2.24M, this is a large-deal QSR construction project. Key underwriting factors lenders evaluate:
At $1.41M–$2.24M, Carl's Jr. deals typically use SBA 7(a) for the full project (within the $5M program limit) — covering franchise fee, site improvements, equipment, and working capital in one credit facility. For real estate purchases, SBA 504 covers the owner-occupied property at long-term fixed rates. The 5% ad fund is unusually high for a QSR brand — confirm the full fee load is reflected in the pro forma cash flow model before submitting to SBA underwriting. Source: SBA SOP 50 10 7.
Per the current FDD, total estimated initial investment runs $1,410,000–$2,240,000. The $50,000 franchise fee, land/building or leasehold improvements, and charbroil kitchen equipment are the primary cost drivers.
Carl's Jr. is owned by CKE Restaurants, which is a subsidiary of Roark Capital Group. CKE also owns the Hardee's brand — Carl's Jr. and Hardee's share the same menu but operate under different brand names in different US regions (Carl's Jr. is Western US; Hardee's is Eastern US).
Carl's Jr. charges a 4% royalty on gross sales plus a 5% advertising fund contribution, for a combined 9% of gross sales.
Yes. Carl's Jr. is on the SBA Franchise Directory. SBA 7(a) covers leased locations within program limits. SBA 504 is ideal for owned freestanding locations. Charbroil kitchen equipment can be financed separately via equipment lending.
Carl's Jr. and Hardee's are the same menu concept owned by CKE Restaurants. Carl's Jr. operates primarily in Western US states; Hardee's operates primarily in the Eastern US. The two brands share kitchen systems, menu, and operational standards but operate under separate franchise agreements and regional branding.
SBA SOP 50 10 7 sets the minimum global DSCR at 1.15×. Most SBA participating lenders require 1.25×–1.35× for QSR franchise startups. For Carl's Jr., lenders model DSCR from FDD Item 19 average annual revenue for comparable CKE/Carl's Jr. locations, adjusting for the 9% combined royalty/ad fee (4% royalty + 5% ad fund), lease, labor, and food costs. The 9% combined fee load is among the highest in the premium burger QSR segment — lenders stress-test this against projected net income to confirm DSCR coverage before approving. Source: SBA SOP 50 10 7.
SBA SOP 50 10 7 requires a minimum 10% equity injection from the borrower's non-borrowed funds. For Carl's Jr.'s $1.41M–$2.24M investment range, SBA lenders typically require 20–25% equity — approximately $282K–$560K from verified borrower funds. The construction timeline and pre-opening period require working capital reserves in addition to the equity injection. Equity sources include personal savings (seasoned 60+ days), ROBS (rollover for business startups), and documented gifts. Source: SBA SOP 50 10 7.
Carl's Jr. operates primarily in the Western United States — California, Nevada, Arizona, Utah, Colorado, Idaho, Oregon, and Washington — along with international markets. The brand's domestic footprint is geographically concentrated compared to national QSR chains, which means available territory is limited in the densest Carl's Jr. markets but more accessible in secondary Western markets. Hardee's (the Eastern/Midwestern twin brand) covers the Southeast and Midwest. Multi-unit development agreements (DAs) are the primary growth vehicle for Carl's Jr. — corporate prioritizes operators committing to 3–5+ unit builds over single-unit applicants. Lenders financing multi-unit DA commitments structure the deal as a master SBA loan or sequential SBA loans per unit. Verify current territory availability at inspire.com.
Inspire Brands (Carl's Jr.'s parent company) provides new franchisees with an initial training program covering restaurant operations, crew management, food safety, and proprietary systems — typically 4–6 weeks at an approved training restaurant. On-site support during the grand opening period is standard. Ongoing support includes field business consultant visits, access to proprietary operational reporting and benchmarking, marketing co-op materials, and supply chain pricing through Inspire's purchasing cooperative. New franchisees are required to complete training and receive certification before grand opening. Lenders view brand-provided training programs favorably in franchise pro formas — they reduce the management learning curve and support faster ramp to system-average AUVs.
Key recurring operating costs for a Carl's Jr. quick-service restaurant: food cost (approximately 28–32% of revenue per typical QSR benchmarks — verify current FDD Item 19 data); labor (30–35% of revenue including manager and crew wages, benefits, and payroll taxes); occupancy (rent/mortgage + CAM, typically 8–12% of revenue for ground lease locations); royalty (4% of gross sales) and advertising fund (5% of gross sales — total 9%, highest in premium burger QSR per category benchmarks); equipment maintenance and supplies; and utilities. Together, the combined royalty + advertising fee load and labor are the largest DSCR stress variables — lenders model worst-case scenarios at 33–35% labor and 9% combined fee load to assess loan resilience. Source: SBA SOP 50 10 7 for franchise underwriting methodology.