What plans and specifications will CJR furnish to the franchisee for a Carls Jr. Restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. It shall be Franchisee's responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. Franchisee shall use only registered architects, registered engineers, and professional and licensed contractors.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 FDD, Carls will furnish prototypical plans and specifications for a Carl's Jr. Restaurant. These plans include requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront, and color scheme.
However, it is the franchisee's responsibility to have all required construction plans and specifications prepared to suit the shape and dimensions of the specific franchised location. The franchisee must ensure that these plans and specifications comply with all applicable ordinances, building codes, permit requirements, and lease requirements and restrictions. Carls requires franchisees to use only registered architects, registered engineers, and professional and licensed contractors.
In practical terms, this means that while Carls provides a template for the restaurant's design, the franchisee is responsible for adapting it to their specific location and ensuring it meets all local regulations. This involves hiring qualified professionals to create the necessary construction plans. The franchisee also assumes all cost, liability, and expense for developing, constructing and equipping the Franchised Restaurant.
This division of responsibility is fairly typical in franchising, where the franchisor sets brand standards and the franchisee manages the local implementation. Prospective franchisees should carefully consider the costs associated with adapting the prototypical plans to their location and ensuring compliance with local regulations.