For Carls franchisees, if the franchise agreement contains a provision inconsistent with California law regarding termination, transfer or non-renewal, which controls?

According to Carls's 2024 Franchise Disclosure Document, California Business and Professions Code Sections 20000 through 20043 provide rights to franchisees concerning the termination, transfer, or non-renewal of a franchise agreement. Therefore, if any provision within the Carls franchise agreement is inconsistent with California law regarding these aspects, California law will take precedence.

This means that prospective Carls franchisees in California are afforded certain protections under state law, regardless of what the franchise agreement might state. For example, if the franchise agreement has terms that conflict with the state's regulations on how a franchise can be terminated, the franchisee is entitled to the rights and protections outlined in the California Business and Professions Code.

This disclosure serves as an important safeguard for franchisees, ensuring that their rights are protected by California law even if the franchise agreement attempts to limit or contradict those rights. Franchisees should carefully review the California Business and Professions Code Sections 20000 through 20043 to fully understand their rights regarding termination, transfer and non-renewal.