What should a prospective Carls franchisee do if the statements in the Acknowledgment Addendum are inaccurate?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
As you know, you and we are entering into a Franchise Agreement for the operation of a Carl's Jr. Restaurant franchise. Please review each of the following statements carefully and confirm their accuracy or advise us of their inaccuracy.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls FDD, when entering into a franchise agreement, prospective franchisees are required to review an Acknowledgment Addendum. This addendum contains statements that the franchisee must confirm are accurate. If a franchisee finds any statement to be inaccurate, they should advise Carls of the inaccuracy. The franchisee can provide comments regarding any inaccuracies found in the statements.
Carls requires franchisees to consider each representation carefully and respond fully and truthfully when signing the addendum. If more space is needed to respond to any representation, the franchisee can continue on a separate sheet and attach it to the addendum.
It's important to note that the Acknowledgment Addendum does not apply to candidates or franchised restaurant businesses located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. For franchisees in these states, different regulations may apply regarding waivers and disclaimers in the franchise agreement.