What specific changes can CJR request for the Franchised Location after termination of a Carls franchise agreement?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Unless CJR directs Franchisee to temporarily maintain the existing appearance of the Franchised Location while CJR determines if it will exercise its option under Section 23, Franchisee
promptly shall make such alterations and modifications to the Franchised Location as may be necessary to clearly distinguish to the public the Franchised Location from its former appearance and also make those specific additional changes as CJR may request for that purpose. If Franchisee fails to promptly make these alterations and modifications, CJR shall have the right (at Franchisee's expense, to be paid upon Franchisee's receipt of an invoice from CJR) to do so without being guilty of trespass or other tort.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls FDD, after the termination of a franchise agreement, the franchisee must promptly make alterations and modifications to the Franchised Location to clearly distinguish it from its former appearance as a Carls restaurant. These changes aim to prevent any confusion among the public regarding the location's affiliation with Carls.
CJR (Carls Jr. Restaurants) has the authority to request specific additional changes to the location for this purpose. If the franchisee fails to make these alterations promptly, Carls has the right to make the changes themselves at the franchisee's expense. The franchisee is responsible for paying these expenses upon receipt of an invoice from Carls.
This clause ensures that upon termination of the franchise agreement, the franchisee takes immediate steps to remove all branding and distinguishing features of Carls from the location, preventing any potential misuse of Carls's brand and reputation. It also protects Carls's interests by allowing them to take necessary actions if the franchisee does not comply with the required changes, ensuring a clear separation between the former franchise location and the Carls brand.