How long does a Carls franchisee have to prepare and complete drawings and plans for a required modernization after receiving written notice from CJR?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Within 60 days after receipt of CJR's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans for the required modernization.
These drawings and plans must be submitted to, and their use approved by, CJR prior to the commencement of work.
Franchisee shall complete the required modernization within the time reasonably specified by CJR in its written notice.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 FDD, a Carls franchisee has 60 days after receiving written notice from CJR to prepare and complete drawings and plans for any required modernization. These drawings and plans must be submitted to CJR for approval before any work begins.
Carls requires that the franchisee complete the modernization within a timeframe that CJR reasonably specifies in its written notice. This means the franchisee needs to be prepared to act quickly not only in creating the plans but also in executing the modernization once the plans are approved.
It's important to note that capital expenses for repairs, maintenance, modifications required by law, or to abate hazardous situations are not subject to the same time limitations. This suggests that these types of changes may need to be addressed even more urgently than a standard modernization. Carls also retains the right to waive, defer, or permit variations from system standards based on specific site conditions or other circumstances, offering some potential flexibility.