How long does Carls have to respond to a Franchise Site Application?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
For each proposed site for a Franchised Restaurant, you will, if requested by us, submit a Franchise Site Application to us. In addition, you may have to submit a complete real estate package (containing that information as we may reasonably require) for a proposed site, which you reasonably believe conforms to our then-current site selection criteria, including demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by CJR or our affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises. Within 30 days after receipt of these documents, and any information which CJR may reasonably require, we will advise you in writing whether we have accepted a particular site; however, CJR has no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with CJR or its affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. Our acceptance or refusal to accept a site for the Franchised Restaurant may be subject to reasonable conditions as determined in our sole discretion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, after receiving all required documents for a proposed site, Carls will advise the franchisee in writing whether they have accepted the site within 30 days. However, Carls is not obligated to review the proposal if the franchisee or their affiliates are not in full compliance with all agreements with Carls or its affiliates.
If Carls does not respond within the 30-day timeframe, the site will be deemed not to have been accepted. This means that if a franchisee doesn't receive a response from Carls within 30 days of submitting all the necessary documents, the franchisee should consider the site rejected.
Carls's acceptance or refusal of a site may be subject to reasonable conditions, determined at their sole discretion. This gives Carls flexibility in setting terms for site approval. It is important for prospective franchisees to maintain open communication with Carls during the site selection process and ensure all agreements are fully complied with to facilitate a timely review of their Franchise Site Application.