Under what circumstances does CJR assume responsibility or liability to developers or third parties by providing approvals, advice, or services to a Carls developer?

According to the 2024 FDD, Carls makes it clear that it does not assume responsibility or liability to developers or third parties simply by providing approvals, advice, or services to a developer. This means that even if Carls offers guidance or consents to certain actions, it does not become liable to the developer or any other party unless it would otherwise be subject to such liability under normal circumstances.

This provision protects Carls from being held responsible for outcomes related to the advice or approvals it provides. For example, if Carls approves a site for development, but the site later proves to be less profitable than anticipated, Carls is not liable. Similarly, if Carls provides advice on construction or operations that does not yield the desired results, the developer cannot hold Carls responsible.

This aspect of the franchise agreement emphasizes that the developer is ultimately responsible for their own business decisions and outcomes. While Carls offers support and guidance, the onus is on the developer to conduct their own due diligence and make informed choices. This is a common arrangement in franchising, where franchisees are independent business owners who benefit from the franchisor's brand and system, but also bear the risks and rewards of their individual operations.