Which item in the Disclosure Document provides information on Carls' post-termination obligations?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in Franchise Agreement (FA) and Development Agreement (DA) | Disclosure Document Item | |
|---|---|---|---|
| v. | Post-termination obligations | FA: Section 19 DA: Section 14 | Item 17 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 40–41)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Item 17 contains information regarding the franchisee's post-termination obligations. The table in Item 9 cross-references various obligations with sections in the Franchise Agreement (FA) and Development Agreement (DA), as well as corresponding items in the disclosure document.
Specifically, the table indicates that post-termination obligations are detailed in Section 19 of the Franchise Agreement and Section 14 of the Development Agreement. To find further details within the disclosure document itself, franchisees should refer to Item 17.
This is a standard practice in franchise disclosure, where Item 9 serves as a roadmap to locate specific information within the FDD and related agreements. Franchisees should carefully review Item 17 to understand the full scope of their responsibilities after the franchise agreement ends, including any restrictions on operating a similar business or using Carls's proprietary information.