Who must certify the evidence of compliance furnished by a Carls franchisee after termination or expiration?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 Carls's 2024 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, a franchisee must furnish evidence of compliance with specific obligations to Carls. This evidence must be certified as true, complete, accurate, and correct by an authorized officer of the franchisee.
This requirement ensures that Carls receives reliable confirmation that the franchisee has met all necessary post-termination obligations. These obligations likely involve ceasing use of Carls's proprietary marks, distinguishing the location from its former appearance, and adhering to non-compete agreements. The certification by an authorized officer of the franchisee adds a layer of accountability, as this individual is legally responsible for the accuracy of the information provided.
For a prospective Carls franchisee, this means that upon the end of their franchise term (whether through expiration or termination), they must ensure that all required actions are meticulously documented and that an authorized officer formally certifies the accuracy of this documentation. Failure to provide properly certified evidence could result in legal or financial repercussions, as Carls relies on this certification to confirm compliance and protect its brand and system standards.