What is the deadline for an existing Carls franchisee to sign a Development Agreement or Franchise Agreement to be eligible for the CJR 2024 Development Incentive Program?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
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To be eligible for the CJR 2024 Development Incentive Program, an existing franchise must meet the following requirements: (i) sign a Development Agreement or Franchise Agreement for the development of one or more newly-constructed Carl's Jr. Restaurant(s) by no later than May 24, 2025, (ii) franchisee must open the newly-constructed Carl's Jr. Restaurant(s) by the date(s) outlined in the corresponding Development Agreement or Franchise Agreement, (iii) franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with CJR or its affiliates, (iv) franchisee must be approved for growth by CJR and its affiliates, (v) franchisee must satisfy CJR's thencurrent financial and operational requirements for new restaurant development, and (vi) franchisee and the Carl's Jr. Restaurant(s) otherwise meet the requirements of the CJR 2024 Development Incentive Program. New franchisees are also eligible to participate in the CJR Development Incentive Program provided they: (i) sign a Development Agreement or Franchise Agreement for the development of one or more newlyconstructed Carl's Jr. Restaurant(s) by no later than May 24, 2025, (ii) open the newly-constructed Carl's Jr.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–19)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, existing franchisees looking to take advantage of the CJR 2024 Development Incentive Program must sign a Development Agreement or Franchise Agreement for the development of one or more newly-constructed Carl's Jr. Restaurants by May 24, 2025.
To qualify for the incentive program, existing franchisees must also meet several other requirements. They must open the newly-constructed Carl's Jr. Restaurant(s) by the dates outlined in the Development Agreement or Franchise Agreement. Additionally, franchisees cannot be in default of their obligations under existing franchise agreements or related agreements with CJR or its affiliates. Carls must also approve the franchisee for growth, and the franchisee must meet Carls's current financial and operational requirements for new restaurant development.
It is important to note that if a franchisee signs the CJR 2024 Development Incentive Program Addendum to the Franchise Agreement, they will not be entitled to any other incentives that Carls may offer for the Franchised Restaurant covered by this program. This means franchisees should carefully consider whether this specific incentive program is the most beneficial option available to them, as they may be forgoing other potential incentives.