How soon after the Purchase Price has been determined can Carls exercise its option to purchase the assets?

According to Carls's 2024 Franchise Disclosure Document, Carls may exercise its option to purchase the assets of a franchised restaurant within 10 days after the purchase price has been determined. To do so, Carls must notify the franchisee in writing. This notification is referred to as "CJR's Purchase Notice."

The purchase price will be paid in cash or cash equivalents at the closing of the purchase. The closing must occur no later than 60 days after the date of CJR's Purchase Notice. This means that from the time the purchase price is determined, Carls has a maximum of 70 days to complete the purchase: 10 days to issue the purchase notice and then up to 60 days for the closing.

This arrangement provides a relatively quick turnaround for Carls to finalize the purchase after the price is agreed upon or appraised. For the franchisee, it means they need to be prepared to close the sale within a couple of months after the purchase price is set. Franchisees should be aware of this timeline and ensure they can meet their obligations for transferring the assets and licenses within this period.