According to the Carls agreement, what is the definition of 'Franchised Restaurants'?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Pursuant to certain franchise or license agreements ("Franchise Agreement(s)") between Franchisee and CKR's subsidiary, Carl's Jr. Restaurants LLC ("Franchisor"), Franchisee is the operator of the franchised Carl's Jr. restaurants located at the addresses listed in attached Exhibit A ("Franchised Restaurants"). Franchisee may add new Franchised Restaurants to this Agreement, with CKR's consent, by amending Exhibit A.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, franchised Carl's Jr. restaurants are defined as the restaurants located at the addresses listed in the attached Exhibit A, as per the franchise or license agreements between the franchisee and Carl's Jr. Restaurants LLC. Franchisees have the option to add new franchised restaurants to the agreement with CKR's consent, which would be done through an amendment to Exhibit A. This definition is used in the context of an agreement between the franchisee and CKR regarding technical support for point of sale and back office software systems used in the restaurants.
This definition is important because it clearly identifies which locations are considered franchised restaurants under the terms of the agreement. This is particularly relevant when determining the scope of support services provided by CKR, as well as the franchisee's obligations related to software licensing and usage. By referencing Exhibit A, the agreement ensures that there is a specific and updatable list of locations covered by the agreement.
For a prospective Carls franchisee, this means that the specific locations listed in Exhibit A of their franchise agreement are the ones considered franchised restaurants for the purposes of the agreement. If they plan to add more locations, they must obtain CKR's consent and amend Exhibit A accordingly. This ensures that all parties are clear on which restaurants are covered under the agreement, which is crucial for managing support services and other obligations.