Under what circumstances will the Carls agreement automatically terminate?

According to Carls' 2024 Franchise Disclosure Document, the franchise agreement will automatically terminate under specific conditions related to the termination of other agreements or the loss of ownership/operation of the franchised location.

Specifically, the Carls agreement will automatically terminate as to a franchised location if the franchise agreement between the Customer and Operator is terminated. In this case, the agreement terminates for all Customer franchised locations operated by that Operator. Additionally, the agreement will automatically terminate as to a specific franchised location if the Operator no longer owns and operates that location. In this case, the termination only applies to that particular franchised location.

This means that a Carls franchisee's agreement is directly tied to their continued operation and ownership of the location, as well as the status of their agreement with the 'Customer' (likely a parent company or another entity in the franchise structure). A franchisee needs to be aware that losing control of a location or having their primary franchise agreement terminated will lead to an automatic termination of the specific agreement referenced in this section of the FDD.