Franchise Facts Report → compare → Carl's JR vs Fatburger
Carl's JR vs Fatburger
Two quick-service restaurant franchises, compared on the numbers their own Franchise Disclosure Documents put on record — investment, fees, Item 19 earnings, outlet churn, and litigation. Not marketing copy.
| Carl's JR | Fatburger | |
|---|---|---|
| Total initial investment FDD Item 7 | $1,486,000 – $3,176,500 | $517,300 – $2,656,900 |
| Initial franchise fee FDD Item 5 | $25,000 | $50,000 |
| Royalty FDD Item 6 | 4% | 6% |
| Item 19 earnings disclosed FDD Item 19 | Yes | Yes |
| Avg unit revenue (headline) FDD Item 19 | $2,230,302 | in report |
| Franchised outlets FDD Item 20 | 982 | 177 |
| Net outlet change (latest yr) FDD Item 20 | -32 | -9 |
| Closure rate FDD Item 20 | 2.9% | — |
| Franchisee lawsuits FDD Item 3 | 4 | disclosed |
| Risk level our read | High | — |
| FDD year registration | 2025 | 2025 |
Are Carl's JR and Fatburger the same company?
No — Carl's JR and Fatburger are franchised by separate companies. Carl's JR's franchisor is CARL'S JR. RESTAURANTS LLC; Fatburger's is FATBURGER NORTH AMERICA, INC.. Each registers and files its own Franchise Disclosure Document, and you would be signing with a different entity depending on which you chose. Note that a registry filing names the franchisor, not necessarily its ultimate parent — two brands owned by the same parent company can still have separate franchisors.
Cost to open
Fatburger is the cheaper franchise to open: its FDD Item 7 puts the total initial investment at $517,300 – $2,656,900, against $1,486,000 – $3,176,500 for Carl's JR.
How much does each make? (Item 19)
Both franchisors make an Item 19 financial performance representation — the detailed figures are in each brand's FDD and in the full report.
Closures & failure rate
Carl's JR reports 982 franchised outlets, net change -32 in the latest reported year, a 2.9% closure rate (FDD Item 20). Fatburger reports 177 franchised outlets, net change -9 in the latest reported year (FDD Item 20). Outlet churn — closures, terminations, non-renewals — is the closest thing an FDD has to a failure rate; the full report puts both brands' churn against quick-service restaurant medians.
Litigation
Carl's JR discloses 4 franchisee-vs-franchisor proceedings in FDD Item 3. Fatburger discloses litigation in FDD Item 3 (case detail in the full report).
This page is the headline numbers. The Deep report compares up to three brands on the complete FDD record — every fee line, the actual Item 19 figures and what they represent, each lawsuit, and churn benchmarked against quick-service restaurant peers.
Only looking at one of them?
Carl's JR vs Fatburger — frequently asked
Are Carl's JR and Fatburger the same company?
No — Carl's JR and Fatburger are franchised by separate companies. Carl's JR's franchisor is CARL'S JR. RESTAURANTS LLC; Fatburger's is FATBURGER NORTH AMERICA, INC.. Each registers and files its own Franchise Disclosure Document, and you would be signing with a different entity depending on which you chose. Note that a registry filing names the franchisor, not necessarily its ultimate parent — two brands owned by the same parent company can still have separate franchisors.
What is the difference between Carl's JR and Fatburger?
Carl's JR and Fatburger are quick-service restaurant franchises from different franchisors (CARL'S JR. RESTAURANTS LLC and FATBURGER NORTH AMERICA, INC.). Fatburger is the cheaper franchise to open: its FDD Item 7 puts the total initial investment at $517,300 – $2,656,900, against $1,486,000 – $3,176,500 for Carl's JR. Both franchisors make an Item 19 financial performance representation — the detailed figures are in each brand's FDD and in the full report.
Is Carl's JR more profitable than Fatburger?
Both franchisors make an Item 19 financial performance representation — the detailed figures are in each brand's FDD and in the full report.
Which is cheaper to open — Carl's JR or Fatburger?
Fatburger is the cheaper franchise to open: its FDD Item 7 puts the total initial investment at $517,300 – $2,656,900, against $1,486,000 – $3,176,500 for Carl's JR.
Is Carl's JR or Fatburger growing faster?
Carl's JR reports 982 franchised outlets, net change -32 in the latest reported year, a 2.9% closure rate (FDD Item 20). Fatburger reports 177 franchised outlets, net change -9 in the latest reported year (FDD Item 20).
Go deeper on each brand
Quick-service restaurant rankings
Figures are as disclosed in each brand's most recent registered FDD (Carl's JR 2025, Fatburger 2025). “—” means the FDD does not disclose it or the table did not parse cleanly — never an estimate.