Within how many days after receiving written notice regarding required modernization must a Carls franchisee prepare and complete drawings and plans?

According to Carls's 2024 Franchise Disclosure Document, a franchisee has 60 days after receiving written notice from CJR (Carls Jr. Restaurants) to prepare and complete drawings and plans for any required modernization. These drawings and plans must be submitted to CJR for approval before any work begins.

Carls requires franchisees to modernize their locations periodically to maintain brand standards. This modernization can involve significant capital expenditures. Franchisees need to factor in the cost and time required for these updates when evaluating the franchise opportunity. The franchisee is responsible for completing the modernization within a timeframe that CJR reasonably specifies in its written notice.

It is important to note that capital expenses for repairs, maintenance, or modifications required by law or to abate hazardous situations are not subject to the same time limitations. This suggests that those types of changes may need to be addressed more urgently than general modernizations. Franchisees should clarify with Carls what constitutes a 'reasonable' timeframe for modernization completion, as this is determined by CJR and can vary.

This requirement ensures that Carls restaurants maintain a consistent brand image and meet current standards. However, it also places a financial burden on franchisees, who must be prepared to invest in these updates periodically. Franchisees should carefully review the franchise agreement and discuss the expected frequency and cost of modernizations with existing franchisees to fully understand the financial implications.