Under what condition is a transferee of a Carls development agreement required to complete development training programs?

According to Carls's 2024 Franchise Disclosure Document, a transferee under a development agreement is generally required to complete development training programs. However, this requirement can be waived at Carls's sole discretion. Specifically, the transferee and any employees hired to fill designated positions must complete the training outlined in Section 5.F of the agreement, unless Carls waives this requirement.

This means that if you are looking to take over an existing Carls development agreement, you should anticipate needing to undergo additional training to meet Carls's standards. The extent and nature of this training will be determined by Carls, and may also apply to specific employees you hire for key roles. The FDD does not specify the content, duration, or cost of this training, only referencing Section 5.F, so further investigation is needed.

It is important to note that Carls retains the right to decide whether or not to waive the training requirement. As a potential transferee, you should discuss this requirement with Carls to understand the specific training expectations and whether a waiver might be possible in your situation. Understanding these obligations is crucial before finalizing any transfer agreement to avoid unexpected costs or time commitments.