Upon termination or expiration of the Development Agreement, what evidence of compliance with Sections 14.A through 14.E must a Carls developer furnish to CJR, and within what timeframe?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- G. Developer shall furnish CJR, within 30 days after the effective date of termination or expiration, evidence (certified to be true, complete, accurate and correct by an authorized officer of Developer) satisfactory to CJR of Developer's compliance with Sections 14.A. through 14.E.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, a developer must furnish CJR with evidence of compliance with Sections 14.A through 14.E. This evidence must be certified as true, complete, accurate, and correct by an authorized officer of the Developer.
The specific areas of compliance that this evidence must cover include the developer's obligations upon termination or expiration, such as ceasing development, terminating exclusive rights, returning materials, and abiding by non-compete covenants.
The developer is required to furnish this evidence to CJR within 30 days after the effective date of the termination or expiration of the Development Agreement. This requirement ensures that Carls receives timely confirmation that the developer has met all necessary obligations following the end of the agreement.