Are Carls franchisees required to comply with air pollution regulations related to charbroilers, and who bears the costs of installation and maintenance of control equipment?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition, all newly-developed Carl's Jr. Restaurants must contain a charbroiler. The charbroiler has been the subject of regulation in certain areas of the country, including California where, in some regions, chain-driven charbroilers must have catalytic converters. The possibility exists that other states may require that air pollution control equipment be installed in connection with the use of a charbroiler. You would be expected to comply with these regulations, if applicable to your Restaurant, and pay all costs of installation and maintenance of the control equipment.
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, Carls franchisees are responsible for complying with air pollution regulations related to charbroilers. The FDD specifies that all newly-developed Carl's Jr. Restaurants must include a charbroiler, which has been subject to regulation in certain areas, particularly California, where some regions require catalytic converters on chain-driven charbroilers.
The FDD indicates that other states may also implement similar air pollution control equipment requirements in the future. If such regulations apply to a franchisee's restaurant, the franchisee is expected to comply with these regulations.
Furthermore, the franchisee bears the financial responsibility for all costs associated with the installation and maintenance of the required air pollution control equipment. This includes the initial investment for installing the equipment and the ongoing expenses for maintaining its operational effectiveness.