What advertising must a Carls franchisee cancel upon termination or expiration?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- F. Unless CJR directs Franchisee to temporarily maintain the existing appearance of the Franchised Location while CJR determines if it will exercise its option under Section 23, Franchisee
promptly shall make such alterations and modifications to the Franchised Location as may be necessary to clearly distinguish to the public the Franchised Location from its former appearance and also make those specific additional changes as CJR may request for that purpose. If Franchisee fails to promptly make these alterations and modifications, CJR shall have the right (at Franchisee's expense, to be paid upon Franchisee's receipt of an invoice from CJR) to do so without being guilty of trespass or other tort.
- G. Franchisee shall furnish CJR, within 30 days after the effective date of termination or expiration, evidence (certified to be true, complete, accurate and correct by an authorized officer of Franchisee) satisfactory to CJR of Franchisee's compliance with Sections 22.A. through 22.F.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
The 2024 Carls Franchise Disclosure Document outlines specific post-termination obligations for franchisees. Upon termination or expiration of the franchise agreement, Carls requires franchisees to make alterations and modifications to the Franchised Location to clearly distinguish it from its former appearance as a Carls restaurant. These changes aim to prevent any public confusion regarding the location's affiliation with the Carls brand.
Carls retains the authority to request specific additional changes to the location for the purpose of differentiation. Should the franchisee fail to promptly make these required alterations, Carls reserves the right to undertake these modifications themselves, at the franchisee's expense. The franchisee is then obligated to pay Carls for these expenses upon receipt of an invoice.
Within 30 days of the termination or expiration date, the franchisee must provide Carls with certified evidence demonstrating their compliance with all post-termination obligations, including the required alterations and modifications. This ensures that the franchisee has taken the necessary steps to disassociate the location from the Carls brand, preventing any potential misuse of Carls's proprietary marks or association with the Carls system.