What site selection assistance does CJR provide to Carls franchisees before opening a Franchised Restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your Franchised Restaurant, we will:
- 1. Provide you with the following site selection assistance: (A) CJR's site selection guidelines and, as you may request, a reasonable amount of consultation with respect thereto; and (B) such on-site evaluation as we may deem advisable as part of our evaluation of your request for site acceptance. (Development Agreement, § 5.B.)
- 2. We will advise you in writing within 30 days after receipt of all documents that we require whether we have accepted a particular site; however, we have no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with us or our affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. (Development Agreement, § 5.D.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to the 2024 FDD, Carls provides site selection assistance to franchisees before they open their Franchised Restaurant. Carls provides franchisees with site selection guidelines and, upon request, a reasonable amount of consultation regarding these guidelines. Additionally, Carls may conduct on-site evaluations as part of their assessment of the franchisee's site acceptance request.
However, the franchisee is responsible for selecting the site for their Franchised Restaurant, and this selection is subject to Carls's final acceptance. Carls does not typically own the restaurant premises and lease them to franchisees. Franchisees are cautioned against acquiring any interest in a site until they have been approved as a franchisee and Carls has provided written acceptance of the site.
Carls may request franchisees to submit a Franchise Site Application and a complete real estate package for each proposed site. This package should include information that aligns with Carls's current site selection criteria, such as demographic characteristics, traffic patterns, parking availability, neighborhood character, competition, proximity to other businesses, and the physical characteristics of the premises. Carls will then advise the franchisee in writing of their decision within 30 days of receiving all required documents, although they are not obligated to review the proposal if the franchisee is not in full compliance with all agreements. If Carls does not respond within this 30-day period, the site is deemed not accepted. Carls's acceptance of a site may also be subject to certain conditions at their discretion.