Does the Carls Franchise Agreement permit a franchisee to develop or operate more than one Franchised Restaurant?

According to Carls's 2024 Franchise Disclosure Document, the standard Franchise Agreement does not grant franchisees the right to develop or operate multiple restaurants. The document states explicitly that a franchisee does not receive the right, under the Franchise Agreement, to develop or operate more than one Franchised Restaurant.

This restriction means that if a prospective franchisee is interested in opening multiple Carls locations, they would need to pursue a Development Agreement with Carls, which is a separate agreement that allows for the development of multiple units within a specific territory.

The FDD also notes that franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands that Carls controls. This highlights the importance of understanding the competitive landscape and market conditions before investing in a Carls franchise. A franchisee's right to relocate is also subject to Carls's prior written consent and specific conditions, including acceptance of the new location, adherence to system standards, timely construction, and reimbursement of Carls's expenses.