What is the range of sizes for a Carls Development Territory?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
If you sign a Development Agreement, you will receive a Development Territory, which will be mutually agreed upon by CJR and you, taking into consideration the density of the area and the number of Franchised Restaurants you agree to develop. A description of the Development Territory will be attached as an appendix to the Development Agreement. The perimeters of the Development Territory may be described by specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks or other similar boundary descriptions, and the size may range from a portion of a metropolitan area to a county or a state in less densely populated areas. You must obtain our prior written acceptance of each site for a Franchised Restaurant, which will be based on our then-current standards for sites for Carl's Jr.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the size of a Development Territory can vary significantly based on factors like population density and the franchisee's development commitments. The Development Territory's size may range from a portion of a metropolitan area to a county or even a state in less densely populated regions.
Carls and the franchisee will mutually agree upon the Development Territory, with the specific boundaries described in an appendix to the Development Agreement. These boundaries may be defined by streets, county lines, state lines, municipal boundaries, railroad tracks, or other similar markers.
It is important to note that Carls does not grant exclusive territories under the Development Agreement. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and brands controlled by Carls. This lack of exclusivity is a common practice in the franchise industry, allowing franchisors to maximize market penetration. Prospective franchisees should carefully consider the potential for competition within their Development Territory and factor this into their business planning.