During construction or renovation of a Carls franchise, is the franchisee required to provide CJR's representatives access to the Franchised Location for inspection purposes?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
During the course of construction and/or renovation, Franchisee shall (and shall cause Franchisee's architect, engineer, contractors, and subcontractors to) cooperate fully with CJR and its designees for the purpose of permitting CJR and its designees to inspect the Franchised Location and the course of construction of the Franchised Restaurant in order to determine whether construction is proceeding according to the Plans. Without limiting the generality of the foregoing, Franchisee, and Franchisee's architect, engineer, contractors and subcontractors shall: (1) supply CJR or its designees with samples of construction materials, test borings, corings, due diligence environmental studies, supplies, equipment and other material and reports, if any such tests, studies or reports indicate there may be material problems or as CJR or its designees may request; and (2) afford CJR's representatives and its designees access to the
Franchised Location and to the construction work in order to permit CJR and its designees to carry out their inspections.
G. Reports
From the Construction Commencement Date to the Opening Date, Franchisee shall submit to CJR, on or before the first day of each month (or more frequently if CJR requests), a report showing progress made toward completing construction and being prepared to open the Franchised Restaurant by the Opening Date.
H. Limitation of CJR's Liability
Notwithstanding the right of CJR to approve the Plans and to inspect the construction work at the Franchised Restaurant, CJR and its designees shall have no liability or obligation with respect to the Franchised Location, the design or construction of the Franchised Restaurant or the furnishings, fixtures and equipment to be acquired; CJR's rights being exercised solely for the purpose of ensuring compliance with the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 FDD, Carls requires franchisees to cooperate fully with CJR (Carl's Jr. Restaurants) and its designees during construction or renovation. This cooperation includes granting CJR representatives access to the franchised location to inspect the progress and ensure it aligns with the approved plans.
This requirement means that as a Carls franchisee, you must allow CJR's team to come onto the site to check the construction or renovation work. This is to make sure everything is being built according to the agreed-upon plans and standards. Franchisees must also ensure their architects, engineers, contractors, and subcontractors also cooperate with CJR's inspections.
Furthermore, franchisees must supply CJR with samples of construction materials, test results, and other relevant reports if there are potential issues or upon CJR's request. This ensures transparency and allows CJR to address any concerns promptly.
Carls also requires franchisees to submit monthly progress reports from the Construction Commencement Date to the Opening Date, detailing the progress made in construction. While Carls retains the right to approve plans and inspect work, the FDD clarifies that CJR has no liability regarding the location, design, or construction, as their rights are solely to ensure compliance with the franchise agreement.