Under what conditions will CJR not authorize the opening of a Carls Franchised Restaurant?

According to the 2024 FDD, Carls will not authorize the opening of a franchised restaurant if all pre-opening requirements are not fully satisfied. These requirements include ensuring that neither the franchisee nor any of its affiliates are in default under the Franchise Agreement or any other agreements with Carls or its affiliates.

Carls also requires that the franchisee is not in default beyond the applicable cure period under any real estate lease, equipment lease, or financing instrument related to the franchised restaurant. This means that franchisees must maintain good standing with all financial and leasing obligations to proceed with opening their Carls location.

Furthermore, before opening the restaurant, certain designated employees must attend and successfully complete the Franchise Management Training Program to the satisfaction of Carls. The franchisee must also notify Carls in writing at least 30 days before expecting construction or renovation to be completed and a certificate of occupancy to be issued. Carls reserves the right to conduct a final inspection to ensure compliance with the Franchise Agreement and will not grant written authorization to open if these conditions are not met. Therefore, franchisees must meet all contractual, financial, training, and notification obligations to gain authorization to open their Carls restaurant.