What is the renewal fee for a Carls franchise with a Renewal Term greater than 5 years, but no more than 10 years?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
r the Renewal Term, CJR's notice will contain preliminary information regarding actions Franchisee must take to satisfy Sections 2.B.(2)(b) and (c). If CJR does not intend to permit Fra
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, a franchisee must pay a renewal fee to CJR if they choose to renew their franchise agreement. The amount of this fee depends on the length of the renewal term. For a renewal term greater than 5 years, but no more than 10 years, the renewal fee is $10,000.
This fee is payable when the franchisee executes the renewal franchise agreement and returns the signed agreement to Carls. This must be done at least one month prior to the expiration of the initial term. Failure to submit the renewal agreement and fee in a timely manner may result in termination of the franchise agreement at the end of the initial term, at Carls's discretion.
It is important to note that the renewal franchise agreement may differ from the original agreement. This includes potential changes to royalty fees and advertising obligations. Therefore, franchisees should carefully review the new agreement before deciding to renew their franchise. Franchisees should also be aware of the conditions that must be met to be eligible for renewal, such as compliance with the existing agreement and required renovations.