If a Carls franchisee loses possession of the Franchise Restaurant premises through no fault of their own, what is the deadline to open a Franchised Restaurant at a new location?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Our prior written consent is required before you relocate the Franchised Restaurant. If your right to possession of the Franchise Restaurant premises is lost through no act or failure to act on your part, you may relocate the Franchised Restaurant if: (1) we accept the new location; (2) you construct and equip a Franchised Restaurant at the new location in accordance with the then-current System standards and specifications; (3) a Franchised Restaurant at the new location is open to the public for business within 6 months after the loss of possession of the original franchised location; and (4) you reimburse us for all reasonable expenses actually incurred by us in connection with the acceptance of the new location.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, if a franchisee loses possession of their restaurant premises through no fault of their own, they have a limited time to relocate and reopen. Specifically, the franchisee must have a new Carls restaurant open to the public within 6 months after losing possession of the original location.
However, this relocation is contingent on several factors. First, Carls must approve the new location. Second, the franchisee must construct and equip the new restaurant according to Carls's then-current system standards and specifications. Finally, the franchisee is responsible for reimbursing Carls for all reasonable expenses that Carls actually incurs while assessing and accepting the new location.
This requirement ensures that Carls franchisees act quickly to resume operations if they are displaced. The six-month window provides a defined timeframe for securing a new location, completing construction, and reopening the restaurant. The conditions attached to the relocation provision—Carls's approval of the new site, adherence to system standards, and reimbursement of expenses—protect Carls's brand and ensure consistency across all franchise locations.