Does this disclosure document cover Carls Jr. franchises at nontraditional locations?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
CJR is offering, in connection with this disclosure document, the opportunity to become a franchisee and operate a Carl's Jr. Restaurant at a traditional location.
CJR may offer franchises to operate Carl's Jr. Restaurants at nontraditional locations under one or more separate disclosure documents. That offer will be on terms and conditions different from those described in this disclosure document. Nontraditional locations include, but are not limited to, airports, train stations, bus stations, travel plazas, gas and convenience locations, toll plazas, stadiums, arenas, convention centers, military facilities, schools, colleges, universities, hospitals, recreational theme parks, business or industrial foodservice venues, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location.
Carl's Jr. Restaurants are quick service restaurants offering a limited menu of breakfast, lunch and dinner products and featuring charbroiled 100% Black Angus Thickburger sandwiches, Hand-Breaded Chicken Tenders, Made from Scratch Biscuits, and other related quick serve menu items.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–19)
What This Means (2024 FDD)
According to the 2024 FDD, this disclosure document primarily covers the opportunity to operate a Carl's Jr. Restaurant at a traditional location. The document states that Carls may offer franchises for nontraditional locations, but these would be covered under separate disclosure documents with different terms and conditions. Nontraditional locations include venues such as airports, train stations, travel plazas, stadiums, military facilities, schools, and casinos.
This means that if a prospective franchisee is interested in opening a Carl's Jr. restaurant in a nontraditional location, they would need to request and review the specific Franchise Disclosure Document tailored for those types of locations. The terms, fees, and obligations could vary significantly from those outlined in the standard franchise agreement.
Furthermore, the 2024 Development Incentive Program for new-construction Carl's Jr. Restaurants does not apply to Carl's Jr. Restaurants opened and operated from non-traditional locations. Therefore, franchisees considering a non-traditional location should be aware that they would not be eligible for this particular incentive, which reduces the royalty fee and APO fee for the first three years of the franchise term.