Under the Carls franchise agreement, is CKR liable for delays caused by a strike?

According to the 2024 FDD, CKR (presumably referring to Carl Karcher Enterprises, the parent company of Carls) is not liable for losses or damages resulting from delays caused by a strike. This is outlined under the "Force Majeure" clause in the franchise agreement. This clause generally protects CKR from liability for failures or delays that are beyond its control.

Specifically, the "Force Majeure" clause extends to delays caused by acts of God, lock-outs or other industrial disturbances, war (declared or undeclared), riot, epidemic, fire or other catastrophe, act of any government or other third party. This means that if a strike, or any of the other listed events, causes a delay that results in a loss or damage to the franchisee, CKR will not be held responsible.

This type of clause is relatively standard in franchise agreements, as it protects the franchisor from being held liable for events outside of their control. However, it's important for prospective Carls franchisees to understand that they will bear the risk of losses or damages caused by these types of events. Franchisees should consider this when making business decisions and obtaining insurance coverage.