Under what condition can the requirement for a Carls Multi-Unit Manager to maintain a primary residence within a reasonable driving distance of the Franchised Restaurant be waived?

According to Carls's 2024 Franchise Disclosure Document, the requirement for a Multi-Unit Manager to maintain a primary residence within a reasonable driving distance of the franchised restaurant can be waived, but only if Carls provides written approval to do so. This waiver is not automatic and requires explicit consent from Carls.

For a prospective Carls franchisee, this means that if you operate restaurants in multiple geographic markets and your Operating Principal doesn't meet specific requirements, you'll need a Multi-Unit Manager. This manager typically needs to live close to the restaurant. However, if you want to hire a Multi-Unit Manager who doesn't live within a reasonable driving distance, you must obtain written permission from Carls.

This condition gives Carls control over the management structure of its franchised locations, ensuring that managers are either local or that any exceptions are approved by them. It is important to note that Carls has the discretion to grant or deny such waivers, so franchisees should not assume that a waiver will be granted. Franchisees should discuss any potential need for such a waiver with Carls during the franchise application process.