When are Carl's Jr. relocation expenses due?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Relocation | CJR's reasonable expenses | On demand, if required | You may not relocate the Franchised Restaurant without CJR's prior written consent, which may be withheld by CJR in its sole discretion. If we approve a relocation of your Franchised Restaurant, we have the right to charge you for all reasonable expenses actually incurred in connection with consideration of the request. |
Source: Item 6 — Other Fees (FDD pages 26–31)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, if a franchisee is approved to relocate their restaurant, they are responsible for Carl's reasonable expenses associated with the relocation. These expenses are due 'on demand, if required.' This means that Carls has the right to request payment for these relocation expenses when they deem it necessary.
It is important to note that franchisees cannot relocate their restaurant without prior written consent from Carls, which Carls may withhold at their discretion. The relocation expenses cover Carl's costs for considering the relocation request.
For a prospective Carls franchisee, this implies that any potential relocation of the franchised restaurant could incur unpredictable costs that must be paid promptly upon request. Franchisees should carefully consider the potential financial burden and ensure they have sufficient capital to cover these expenses if relocation becomes necessary.