Which section of the Carls franchise agreement outlines the terms related to the construction of the franchised restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
3. LEASE TERMS
If Franchisee has not previously provided CJR with a fully-signed copy of its lease or sublease for the Franchised Location, or proof that Franchisee has purchased the real estate for the Franchised Location, Franchisee shall immediately upon execution of this Agreement provide CJR with a copy of the fully-signed lease or sublease, together with the executed Carl's Jr. Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
4. CONSTRUCTION OF THE FRANCHISED RESTAURANT
A. Development Training
Franchisee shall complete, to CJR's satisfaction, any development training required by CJR. Franchisee shall pay CJR, for each person attending development training, a tuition fee as established by CJR from time to time. Franchisee also may attend optional development training as offered by CJR from time to time, subject to payment of a tuition fee as established by CJR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. It shall be Franchisee's responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. Franchisee shall use only registered architects, registered engineers, and professional and licensed contractors.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, Section 4 of Item 22, titled "CONSTRUCTION OF THE FRANCHISED RESTAURANT," details the terms and conditions for constructing a Carls restaurant. This section covers essential aspects of the restaurant development process that franchisees must adhere to.
Specifically, subsection A discusses development training, stating that franchisees must complete any development training required by Carls to their satisfaction. Franchisees are responsible for paying tuition fees for each person attending the training, as determined by Carls. Additionally, franchisees must cover all travel, living, and other expenses incurred during the training.
Subsection B outlines restaurant development, stating that the franchisee assumes all costs, liability, and expenses for developing, constructing, and equipping the franchised restaurant. Carls will provide prototypical plans and specifications, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront, and color scheme. The franchisee is responsible for preparing all required construction plans and ensuring they comply with applicable ordinances, building codes, permit requirements, and lease restrictions, using only registered architects, engineers, and licensed contractors.