What documentation might Carls require for a proposed restaurant site?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
For each proposed site for a Franchised Restaurant, you will, if requested by us, submit a Franchise Site Application to us. In addition, you may have to submit a complete real estate package (containing that information as we may reasonably require) for a proposed site, which you reasonably believe conforms to our then-current site selection criteria, including demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by CJR or our affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises. Within 30 days after receipt of these documents, and any information which CJR may reasonably require, we will advise you in writing whether we have accepted a particular site; however, CJR has no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with CJR or its affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. Our acceptance or refusal to accept a site for the Franchised Restaurant may be subject to reasonable conditions as determined in our sole discretion.
We may refuse to accept a site for a proposed Franchised Restaurant unless you demonstrate sufficient financial capabilities, in our sole judgment, applying standards consistent with criteria we use to establish Carl's Jr. Restaurants in other comparable market areas, to properly develop, operate and maintain the Franchised Restaurant. Therefore, you also must furnish us with such financial statements and other information regarding you and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant, as we reasonably may require.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the documentation required for a proposed restaurant site may include a Franchise Site Application and a complete real estate package if requested by Carls. The real estate package should contain information that conforms to Carls's current site selection criteria.
The site selection criteria includes demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, and competition from other businesses in the area. It also includes proximity to other businesses, including restaurants operated or franchised by Carls or its affiliates, the nature of other businesses near the site, and other commercial characteristics. These commercial characteristics include the purchase price, rental obligations, and other lease terms for the proposed site.
Carls also considers the size, appearance, other physical characteristics, and a site plan of the premises. Carls will advise the franchisee in writing whether they have accepted a particular site within 30 days after receipt of these documents and any information which Carls may reasonably require. However, Carls has no obligation to review any development proposal if the franchisee or its affiliates are not in full compliance with all agreements with Carls or its affiliates. If Carls does not respond within that time period, they will be deemed not to have accepted the site. Carls's acceptance or refusal to accept a site for the Franchised Restaurant may be subject to reasonable conditions as determined in their sole discretion.
Carls may refuse to accept a site for a proposed Franchised Restaurant unless the franchisee demonstrates sufficient financial capabilities, in Carls's sole judgment, applying standards consistent with criteria they use to establish Carl's Jr. Restaurants in other comparable market areas, to properly develop, operate and maintain the Franchised Restaurant. Therefore, the franchisee must furnish Carls with financial statements and other information regarding the franchisee and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant, as Carls reasonably may require.