Under what conditions can Carls waive the requirement for the Multi-Unit Development Manager to maintain their primary residence within a reasonable driving distance of the Development Territory?

According to Carls's 2024 Franchise Disclosure Document, the requirement for a Multi-Unit Development Manager to maintain their primary residence within a reasonable driving distance of the Development Territory can be waived, but only if Carls provides a written waiver. Specifically, the FDD states, "Unless waived in writing by CJR, the Multi-Unit Development Manager shall maintain his primary residence within a reasonable driving distance of the Development Territory."

This waiver provision offers Carls some flexibility in exceptional circumstances. For example, if a highly qualified candidate is unwilling to relocate, Carls might choose to waive the residency requirement to secure their services. This could be beneficial for a developer if Carls is willing to work with them to find the best possible management, even if that manager doesn't live nearby.

However, it's important to note that the decision to grant a waiver is entirely at Carls's discretion. A prospective franchisee should not assume that a waiver will be granted, even if they have a compelling reason. It would be prudent to discuss this requirement with Carls during the due diligence process to understand their typical stance on residency waivers and what factors they consider when making such decisions.