If a Carls franchisee leases the restaurant premises from a third party, what document must they sign?

According to Carls's 2024 Franchise Disclosure Document, if a franchisee chooses to lease the restaurant premises from a third-party landlord, they are required to sign the Franchise Lease Addendum. This addendum is included as Appendix G to the Franchise Agreement.

This requirement ensures that Carls has some control over the lease terms, even when the company is not the direct landlord. The Franchise Lease Addendum likely contains provisions that protect Carls's interests, such as ensuring the lease aligns with the franchise agreement and allowing Carls to step in if the franchisee defaults on the lease. This is a common practice in franchising, as the location and lease terms can significantly impact the success and brand image of the franchise.

Prospective franchisees should carefully review Appendix G of the Franchise Agreement to understand the specific terms and conditions of the Franchise Lease Addendum. They should also consult with a legal professional to ensure they fully understand their obligations under the lease and the addendum. While Carls does not require franchisees to lease from them or an affiliate, they do retain the right to approve the site selected for the Carl's Jr. Restaurant.