Which section is deleted from the Carls Franchise Agreement as per this addendum?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10. Item 2 in Appendix A to the Franchise Agreement is deleted.
3. Section 12.B.(9) is deleted and replaced with the following statement:
Developer's use or duplication of the Carl's Jr. System or any part of the Carl's Jr. System in any other business, or disclosure of any part of the Carl's Jr. System to others for use or duplication in any other business, would constitute an unfair method of competition, for which CJR would be entitled to all legal and equitable remedies, including the right to seek injunctive relief.
- 9. Section 29.M. is deleted.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 Carls FDD, several sections are deleted from the Franchise Agreement via addenda. For Minnesota franchisees, Section 12.B.(9) of the Development Agreement is deleted and replaced with a statement regarding the use or duplication of the Carl's Jr. System. For all franchisees, Item 2 in Appendix A to the Franchise Agreement is deleted, and Section 29.M. is deleted from the standard agreement.
For prospective Carls franchisees, this means that certain terms of the standard franchise agreement are altered or removed entirely depending on the state where the franchise is located. In Minnesota, the franchisee is explicitly prohibited from using or disclosing any part of the Carl's Jr. System in any other business, reinforcing the protection of Carls's intellectual property and trade secrets.
It is important for prospective franchisees to carefully review all addenda applicable to their specific location and circumstances, as these addenda modify the standard Franchise Agreement and can have a significant impact on their rights and obligations. Franchisees should pay close attention to any sections that are deleted or replaced, as well as any new provisions that are added, to fully understand the terms of their franchise agreement with Carls.