If a Carls franchisee subleases the Franchised Location from CJR, what is the timeframe within which they must provide written notice of their intent to exercise their renewal option?

According to Carls's 2024 Franchise Disclosure Document, the timeframe for a franchisee to provide written notice of their intent to renew their franchise agreement differs based on whether they sublease the franchised location from CJR. Generally, a Carls franchisee must notify CJR of their intent to renew not less than 12 months, nor more than 24 months, before the expiration of the initial term.

However, if the Carls franchisee subleases the franchised location from CJR, the notification timeframe changes. In this case, the franchisee must provide written notice to CJR not less than 6 months, nor more than 12 months, before the date notice of renewal is required to be provided to the landlord under the master lease.

This distinction is important for prospective Carls franchisees to understand, as failure to provide timely notice constitutes a waiver of their option to remain a franchisee beyond the initial term. Franchisees who sublease from CJR must be particularly aware of the master lease terms to ensure they meet the earlier notification deadline.