What alterations and modifications must a Carls franchisee make to the Franchised Location 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)
According to the 2024 FDD, unless Carls directs otherwise to maintain the location's appearance temporarily, a franchisee must promptly make alterations and modifications to the Franchised Location to clearly differentiate it from its former appearance as a Carls restaurant. These changes should be sufficient to remove any association with the Carls brand. Carls may also request specific additional changes for this purpose.
If the franchisee fails to make these alterations and modifications promptly, Carls has the right to make the changes themselves. The franchisee will be responsible for covering these expenses upon receiving an invoice from Carls. This ensures that the location no longer represents the Carls brand and prevents any potential confusion for customers.
Within 30 days after the termination or expiration date, the franchisee must provide Carls with evidence, certified by an authorized officer, confirming their compliance with these alteration and modification requirements. This evidence must be true, complete, accurate, and satisfactory to Carls. This requirement ensures that Carls has documented proof that the franchisee has fulfilled their obligations regarding the location's appearance post-termination or expiration.