Under what conditions can a Carls franchisee add new franchised restaurants to their Franchise Agreement?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Pursuant to certain franchise or license agreements ("Franchise Agreement(s)") between Franchisee and CKR's subsidiary, Carl's Jr. Restaurants LLC ("Franchisor"), Franchisee is the operator of the franchised Carl's Jr. restaurants located at the addresses listed in attached Exhibit A ("Franchised Restaurants"). Franchisee may add new Franchised Restaurants to this Agreement, with CKR's consent, by amending Exhibit A.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 Carls FDD, a franchisee may add new franchised restaurants to their Franchise Agreement with Carls' consent by amending Exhibit A of the agreement. Exhibit A lists the addresses of the franchisee's franchised Carls Jr. restaurants. This indicates that the franchisee must obtain approval from Carls to expand their operations by adding new locations to their existing agreement.
This condition highlights the importance of maintaining a good relationship with Carls. Franchisees should ensure they meet all operational and financial requirements to increase their chances of receiving consent for expansion. The amendment of Exhibit A serves as a formal acknowledgment and agreement between Carls and the franchisee regarding the addition of new restaurant locations.
For a prospective Carls franchisee, this means that while the opportunity to expand exists, it is not guaranteed. Franchisees need to demonstrate their ability to successfully manage and operate existing locations before Carls will consider allowing them to add more restaurants. This requirement protects the Carls brand by ensuring that new locations are operated by experienced and capable franchisees.