After termination or expiration of the Development Agreement, what evidence must a Carls developer furnish to CJR to demonstrate compliance with Sections 14.A. through 14.E, and within what timeframe?

According to Carls's 2024 Franchise Disclosure Document, a developer must furnish evidence to CJR within 30 days after the termination or expiration date of the Development Agreement. This evidence must be satisfactory to CJR and certified by an authorized officer of the developer as true, complete, accurate, and correct. The evidence should demonstrate the developer's compliance with Sections 14.A through 14.E of the Development Agreement.

These sections outline the developer's obligations upon termination or expiration, including ceasing development in the territory (with exceptions for already-approved locations), the termination of exclusive rights, the return of CJR's materials, and continued adherence to non-compete covenants. The requirement for certified evidence ensures that Carls has a formal record of the developer's adherence to these post-termination obligations.

For a prospective Carls developer, this means maintaining meticulous records and ensuring full compliance with all requirements outlined in Sections 14.A through 14.E. Upon termination or expiration, the developer must compile and submit comprehensive documentation to Carls within the specified timeframe. Failure to provide satisfactory evidence could potentially lead to legal or financial repercussions, as Carls needs to protect its brand and system from unauthorized use or competition.