Does the Acknowledgment Addendum to the Carl's Jr. Restaurant Franchise Agreement apply to franchise locations in California?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
THIS ACKNOWLEDGMENT ADDENDUM DOES NOT APPLY TO CANDIDATES LOCATED IN, OR FRANCHISED RESTAURANT BUSINESSES TO BE LOCATED IN, ANY OF THE FOLLOWING FRANCHISE REGISTRATION STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls FDD, the Acknowledgment Addendum to the Carl's Jr. Restaurant Franchise Agreement does not apply to franchise locations in California. The document explicitly states that the addendum is not applicable to candidates or franchised restaurant businesses located in California, along with several other franchise registration states.
This means that if you are seeking to open a Carls franchise in California, you will not be required to sign the Acknowledgment Addendum. This addendum likely contains acknowledgements and representations that Carls requires of franchisees in states where it is permissible, but which are either not required or not enforceable in California due to state franchise laws.
Prospective franchisees should carefully review all documents within the Franchise Agreement to understand their rights and obligations, noting that certain addenda or provisions may be state-specific and not universally applicable.