What alterations must be made to the premises after the termination of the Lease or Franchise Agreement to distinguish it from a Carls Jr. Restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Landlord agrees that, following the expiration or earlier termination of the Lease or the Franchise Agreement, Tenant shall have the right to make those alterations and modifications (including removal and demolition of improvements installed by Tenant or CJR if necessary) to the Premises or any part thereof as may be necessary to clearly distinguish to the public the Premises from a Carl's Jr.
Restaurant and also to make those specific additional changes as CJR reasonably may require for that purpose.
This includes, but is not limited to, removal of all Proprietary Marks.
Landlord further agrees that, if Tenant fails to promptly make the necessary alterations and modifications, CJR shall have the right to do so without being guilty of trespass or other tort so long as CJR makes repairs to the building caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 FDD, after the expiration or termination of the Lease or Franchise Agreement, the tenant has the right to make alterations and modifications to the premises to distinguish it from a Carls Jr. Restaurant. These changes may include removing and demolishing improvements installed by the tenant or Carls Jr. if necessary.
Carls Jr. may also require specific additional changes for this purpose, including the removal of all Proprietary Marks. If the tenant does not promptly make these alterations and modifications, Carls Jr. has the right to do so, provided they repair any building damage caused by the removal.
Furthermore, the landlord agrees to allow the tenant to remove all proprietary signs, distinctive exterior and interior designs, colors, layouts, and trademarks (collectively, "Proprietary Marks") at the tenant's expense, as long as the tenant repairs any damage to the premises caused by such removal.