During the Development Term for a Carls franchise, what level of effort is the Developer and Development Principal required to devote to the development, management, and operation of Franchised Restaurants in the Development Territory?

According to Carls's 2024 Franchise Disclosure Document, both the Developer and the Development Principal are required to devote their best efforts to the development, management, and operation of Franchised Restaurants within the designated Development Territory during the Development Term. This implies a significant commitment of time, resources, and attention to ensure the successful establishment and operation of Carls restaurants in the area.

For a prospective Carls franchisee, this "best efforts" clause means they must actively work to develop and manage their franchised restaurants. This includes tasks such as site selection, construction, hiring and training staff, marketing, and ensuring compliance with Carls's standards and procedures. The Development Principal, in particular, plays a crucial role in overseeing these activities and ensuring the restaurants' success.

If the Developer is developing Carls restaurants in multiple markets, the Development Principal needs to meet specific qualifications in at least one of those markets. Otherwise, Carls requires the Developer to designate a Multi-Unit Development Manager who devotes full time and best efforts to supervising the development of the Franchised Restaurants. This manager must not engage in any other business activities that require substantial management responsibility, maintain a primary residence within a reasonable driving distance of the Development Territory (unless waived by Carls), complete Carls's development training and the Franchise Management Training Program (FMTP), and be approved by Carls. This ensures that someone is fully dedicated to the Carls franchise's success.