How and when does a Carls franchisee pay the Renewal Fee to CJR?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
A. Renewal Fee
The Renewal Fee is set forth in Appendix 1 attached to the Renewal Addendum and is in the amount provided for in the Prior Agreement. Franchisee shall pay the Renewal Fee to CJR simultaneously with the execution of this Agreement. The Renewal Fee is paid in consideration of CJR renewing the Franchise for the Franchised Restaurant for the Renewal Term. The Renewal Fee was fully earned at the time paid and is not refundable for any reason whatsoever. All references to the "Initial Franchise Fee" shall mean and refer to the Renewal Fee.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 FDD, a Carls franchisee must pay the renewal fee to CJR (Carl's Jr. Restaurants LLC) simultaneously with the execution of the Renewal Addendum agreement. The renewal fee amount is detailed in Appendix 1 of the Renewal Addendum and is the same amount as provided for in the Prior Agreement.
This fee is required in exchange for CJR renewing the franchise for the Franchised Restaurant for the Renewal Term. Once paid, the renewal fee is considered fully earned and is non-refundable, regardless of the circumstances.
For franchisees considering renewing their Carls franchise, it's important to note that all references to the "Initial Franchise Fee" will now refer to the Renewal Fee. Franchisees should carefully review Appendix 1 of the Renewal Addendum to understand the exact renewal fee amount and ensure they are prepared to pay it at the time of signing the renewal agreement.