What right does the tenant have following the expiration or earlier termination of the Lease or the Franchise Agreement regarding alterations and modifications to distinguish the premises from a Carl's Jr. Restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Landlord agrees that, following the expiration or earlier termination of the Lease or the Franchise Agreement, Tenant shall have the right to make those alterations and modifications (including removal and demolition of improvements installed by Tenant or CJR if necessary) to the Premises or any part thereof as may be necessary to clearly distinguish to the public the Premises from a Carl's Jr.
Restaurant and also to make those specific additional changes as CJR reasonably may require for that purpose.
This includes, but is not limited to, removal of all Proprietary Marks.
Landlord further agrees that, if Tenant fails to promptly make the necessary alterations and modifications, CJR shall have the right to do so without being guilty of trespass or other tort so long as CJR makes repairs to the building caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 FDD, following the expiration or earlier termination of the Lease or the Franchise Agreement, the tenant has the right to make alterations and modifications to the premises to clearly distinguish it from a Carl's Jr. Restaurant. This includes removing and demolishing improvements installed by the tenant or Carls Jr. if necessary. The tenant is also able to make additional changes that Carls Jr. may reasonably require for this purpose, such as removing all Proprietary Marks.
If the tenant does not promptly make the necessary alterations and modifications, Carls Jr. has the right to do so without being guilty of trespass or other tort. However, Carls Jr. is responsible for making repairs to the building caused by such removal.
This clause ensures that upon termination of the lease or franchise agreement, the property can be repurposed without continuing to appear as a Carl's Jr. restaurant, which protects both the landlord and Carls Jr.'s brand identity. It also specifies who is responsible for the costs and actions associated with rebranding the location.