Who determines if a Carls franchisee or proposed transferee must complete remodels and upgrades before a transfer?

According to Carls's 2024 Franchise Disclosure Document, Carls determines whether a franchisee or proposed transferee needs to complete remodels, renovations, re-imaging, maintenance, and facility upgrades to conform the franchised restaurant to the image of the Carls system for new franchised restaurants.

This requirement ensures that all Carls restaurants maintain a consistent and up-to-date image, which is crucial for brand recognition and customer experience. For a prospective franchisee, this means that if they are considering purchasing an existing Carls franchise, Carls will assess the restaurant's current condition and may require significant investments to bring it up to current standards.

The costs associated with these required upgrades are the responsibility of either the franchisee or the proposed transferee, as determined by Carls. This can be a substantial expense and should be carefully considered when evaluating a potential franchise purchase. It is important for prospective franchisees to discuss these potential costs with Carls and to factor them into their financial projections.