Carl's Jr vs McDonald's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Carl's Jr vs McDonald's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Carl's Jr Franchise
McDonald's Franchise
Investment $1,603,000 - $2,168,000$1,314,500 - $2,306,500
Franchise Fee $25,000 - $35,000$45,000
Royalty Fee 4%4%
Advertising Fee 6%4%+
Year Founded 19451955
Year Franchised 19841955
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee Varies$45K


Business Experience Requirements

 
Carl's Jr Franchise
McDonald's Franchise
Experience
  • Industry experience
  • General business experience
  • Preferable operational experience in a restaurant, but will consider people who have owned their own business

  • Industry experience
  • General business experience
  • Marketing skills

  • Financing Options

     
    Carl's Jr Franchise
    McDonald's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/No
    Start-up Costs No/NoNo/No
    Equipment No/NoNo/Yes
    Inventory No/NoNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support

     
    Carl's Jr Franchise
    McDonald's Franchise
    Training Available at franchisee's location, 12 weeks of management training & at grand opening On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperativesPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software
    Marketing Co-op advertising, Ad slicks, National media, Regional advertisingCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed.

    82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)


    Expansion Plans

     
    Carl's Jr Franchise
    McDonald's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Carl's Jr

    Carl's Jr. is known all through the Western U.S. as the place to go for premium quality burgers, specifically its 100% Angus hamburger Six Dollar Burger line.

    At Hardee's® and Carl's Jr.® our brand sets us apart from the competition. Our advertisements are created to be so bold and memorable that they've been known to crash internet video servers. Our taglines deliver bold statements and our visuals are designed to keep viewers wanting more. EAT LIKE YOU MEAN IT.

    Hardee's® and Carl's Jr.® have a strong track record of successfully developing new premium products to lead the category in taste, quality, and innovation. As an industry leader, we have consistently out-delivered all other quick-service restaurants in product development since our founding. Staying on top requires that we continue to lead the way in the products we serve through taste, quality, and innovation.


    ""  "Entrepreneur

    #100 in Franchise 500 for 2020.
    #202 in Franchise 500 for 2021.




    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


    "Top   ""  "Entrepreneur

      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 in Franchise 500 for 2021