Under what conditions does CJR have the right to enter the premises to make modifications or alterations necessary to protect the Carl's Jr. Restaurant System?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, notwithstanding anything to the contrary elsewhere in the Lease, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows:
-
- Following reasonable notice to Landlord, CJR shall have the right to enter the Premises to make any modifications or alterations necessary to protect the "Carl's Jr. Restaurant System" and the Proprietary Marks and to cure any Tenant default under the Lease within the time periods provided by the Lease, and charge Tenant for all costs incurred in making such modifications or alterations and for curing any such default, all without being guilty of trespass or other tort.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 FDD, CJR, which is likely the parent company of Carls, has specific rights to enter a franchisee's premises under certain conditions. Following reasonable notice to the landlord, CJR has the right to enter the premises to make modifications or alterations necessary to protect the "Carl's Jr. Restaurant System" and the Proprietary Marks. Additionally, CJR can enter the premises to cure any tenant default under the lease within the time periods provided by the lease.
Carls franchisees will be charged for all costs incurred by CJR in making such modifications or alterations and for curing any default. This entry and work can be done without CJR being considered guilty of trespass or other tort. This provision ensures that Carls can maintain brand standards and protect its system and trademarks, even if the franchisee is not fulfilling their lease obligations or maintaining the premises appropriately.
This clause in the lease addendum is crucial for prospective Carls franchisees to understand. It highlights that while the franchisee is responsible for the day-to-day operations and lease obligations, Carls retains the right to intervene to protect its brand and system. The franchisee will bear the financial burden of these interventions, so it is important to maintain compliance with the lease and franchise agreement to avoid such situations.