factual

During construction or renovation of a Carls franchise, what must the franchisee supply to CJR or its designees if tests or studies indicate potential material problems?

Carls Franchise · 2024 FDD

Answer 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.

Source: Item 22 — CONTRACTS (FDD page 80)

What This Means (2024 FDD)

According to Carls's 2024 Franchise Disclosure Document, during the construction or renovation of a franchise location, franchisees must cooperate fully with Carls and its designees. This cooperation includes providing samples of construction materials, test borings, corings, due diligence environmental studies, supplies, equipment, and other materials and reports to Carls or its designees if these tests, studies, or reports indicate there may be material problems. Franchisees must also allow Carls's representatives and designees access to the franchise location and construction work to conduct inspections.

This requirement ensures that Carls maintains its quality standards and protects its brand reputation. By requiring franchisees to provide potentially problematic materials and reports, Carls can identify and address issues early in the construction or renovation process, preventing costly mistakes and ensuring that the franchise location meets Carls's specifications.

For a prospective Carls franchisee, this means being prepared to share all relevant documentation and materials with Carls during construction or renovation. It also means fostering a cooperative relationship with Carls's representatives and being responsive to their requests for information or access to the construction site. Failing to comply with these requirements could result in delays, additional costs, or even the disapproval of the franchise location.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.