Under what conditions will CJR provide assistance in opening a Carls franchised restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
chased the real estate for the Franchised Location, Franchisee shall immediately upon execution of this Agreement provide CJR with a copy of the fully-signed lease or sublease, together with the executed Carl's Jr. Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
4. CONSTRUCTION OF THE FRANCHISED RESTAURANT
A. Development Training
Franchisee shall complete, to CJR's satisfaction, any development training required by CJR. Franchisee shall pay CJR, for each person attending development training, a tuition fee as established by CJR from time to time. Franchisee also may attend optional development training as offered by CJR from time to time, subject to payment of a tuition fee as established by CJR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 FDD, Carls provides prototypical plans and specifications for a Carls Jr. Restaurant. These include requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. However, the franchisee assumes all costs, liability, and expense for developing, constructing, and equipping the franchised restaurant.
Carls requires the franchisee to have prepared all required construction plans and specifications to suit the shape and dimensions of the franchised location. The franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions.
Furthermore, Carls mandates that the franchisee use only registered architects, registered engineers, and professional and licensed contractors for the construction. Franchisees must also complete any development training required by Carls and pay the tuition fees for each person attending the training. Franchisees are also responsible for all travel, living, and other expenses incurred while attending the development training.