If a Carls franchisee proposes to purchase or lease fixtures, furnishings, equipment or signs not already approved by CJR, what is the franchisee required to do?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees to use in the development and operation of the Franchised Restaurant only those fixtures, furnishings, equipment and signs that CJR has approved for Carl's Jr. Restaurants as meeting its specifications and standards for quality, design, appearance, function and performance. Franchisee further agrees to place or display at the Franchised Restaurant (interior and exterior) only those signs, emblems, lettering, logos and display materials that CJR approves in writing from time to time.
Franchisee shall purchase or lease approved brands, types or models of fixtures, furnishings, equipment and signs only from suppliers designated or approved by CJR, which may include CJR. If Franchisee proposes to purchase, lease or otherwise use any fixtures, furnishings, equipment or signs which have not been approved by CJR, Franchisee shall first notify CJR in writing and shall, at its sole expense, submit to CJR upon its request, sufficient specifications, photographs, drawings and/or other information or samples for a determination as to whether those fixtures, furnishings, equipment and/or signs comply with CJR's specifications and standards. CJR will, in its sole discretion, approve or disapprove the items and notify Franchisee within 30 days after CJR receives the request, or such longer period as CJR requires.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, a franchisee must adhere to specific procedures when proposing to use fixtures, furnishings, equipment, or signs not already approved by Carls. The franchisee is required to first notify Carls in writing of their intention to use the unapproved items. Following this notification, the franchisee must, at their own expense, submit detailed specifications, photographs, drawings, and any other relevant information or samples that Carls may request. This comprehensive submission allows Carls to properly evaluate whether the proposed items meet the brand's standards for quality, design, appearance, function, and performance.
Carls retains the sole discretion to either approve or disapprove the submitted items. After receiving the franchisee's request and all necessary documentation, Carls will notify the franchisee of their decision within 30 days, although they reserve the right to extend this period if more time is needed for evaluation. This process ensures that all elements within the Carls restaurant, including fixtures and signage, align with the brand's established image and operational standards.
This requirement is typical in franchising, as it allows the franchisor to maintain brand consistency and quality control across all locations. For a prospective Carls franchisee, this means they cannot independently choose unapproved items without going through the formal submission and approval process, which could potentially add time and costs to the restaurant's development or operation. Franchisees should factor in these potential delays and expenses when planning for new equipment or restaurant upgrades.