According to the 2024 Carls Franchise Disclosure Document, Appendix A contains information regarding the Development Territory. Specifically, it mentions that the developer's rights within the Development Territory are subject to the limitations detailed in Section 2 of the agreement. The appendix also clarifies that any political boundaries described within the Development Territory are fixed as of the agreement date and will not change, even if political reorganizations or boundary changes occur later. Unless otherwise specified, street, road, and highway boundaries include only the inside portion of the stated boundary.

This means that prospective Carls developers should carefully review Appendix A to fully understand the geographic scope and any restrictions on their development rights. The fixed boundary clause is particularly important, as it prevents the territory from expanding due to external changes. Developers need to be aware of these limitations when evaluating the potential of the Development Territory and planning their restaurant locations.

Understanding these details is crucial for avoiding disputes with Carls regarding territory boundaries and development rights. Franchisees should seek clarification from Carls on any ambiguous language or unclear boundaries before signing the Development Agreement. This due diligence will help ensure a clear understanding of the developer's rights and obligations within the Development Territory.