Deal Near to Put Carl’s Jr. in Nine Pacific Nations

Carl Karcher Enterprises, parent company of Carl’s Jr., is negotiating a licensing agreement with a Malaysian finance company to expand the fast-food restaurant chain into nine Pacific Rim countries.

The deal, which could be announced as early as today, would mark the company’s second major foray into the Far East. In 1988, Karcher signed a deal with a Japanese firm to develop 30 Carl’s Jr. restaurants in Japan. Two are open and three more are slated to open this year.

The move also places Karcher among the major U.S. fast-food operators staking a claim to the growing international market.

Karcher is negotiating the new Far East licensing agreement with MBf International Ltd., a unit of MBF Group of Cos., a major financial services firm in Kuala Lumpur, Malaysia.

Under the proposed agreement, the first Carl’s Jr. restaurant would open in Malaysia early next year, followed by other outlets in Singapore, Australia and Hong Kong. Other target countries would include Indonesia, the Philippines, Thailand, Taiwan and New Zealand.

The financial terms of the deal could not be determined. But analysts said it would likely involve formation of a joint venture in which MBf would provide most of the financing and Karcher the management and training. MBf already has a licensing agreement with another U.S. restaurant chain, Dallas-based Grandy’s.

“A joint venture is the only way to go,” said Sarah Stack, an analyst for Bateman Eichler, Hill Richards. “You need to have a national partner to help navigate the cultural differences.”

Neither Karcher nor MBf officials could be reached for comment Thursday. But the basic outline of the transaction was confirmed by company representatives.