Under what circumstances are extensive structural changes, major remodeling and renovations required for a Carls franchised restaurant?

According to Carls's 2024 Franchise Disclosure Document, extensive structural changes, major remodeling, and renovations to modernize a franchised restaurant are required under specific conditions. These include (1) as a condition of renewal of the franchise agreement, and (2) as a condition of keeping the restaurant consistent with the image of the Carls system for new franchised and company-owned restaurants.

Carls requires franchisees to renovate and modernize their restaurants to conform to the current image of the system. This encompasses interior and exterior designs, decor, color schemes, furnishings, equipment, and the presentation of proprietary marks. These changes ensure that all Carls restaurants, whether new or existing, maintain a consistent brand image and customer experience.

Before commencing any modernization work, a franchisee must prepare and submit drawings and plans to Carls for approval. These plans must be completed within 60 days after receiving written notice from Carls regarding the required modernization. The franchisee is then responsible for completing the modernization within the timeframe specified by Carls in its written notice. Carls also retains the right to make changes or modifications to the system, requiring franchisees to adapt and make necessary expenditures to align with these changes.