What access are the appraisers given to conduct the appraisal of the Carls Jr. assets?

According to the 2025 Carls Jr. Franchise Disclosure Document, if an appraisal is required to determine the fair market value of assets, the selected appraisers are granted specific access to facilitate their assessment. This access includes full entry to the Franchised Restaurant, the Franchised Location, and the franchisee's books and records.

The appraisers' access is limited to customary business hours to ensure minimal disruption to the ongoing operations of the Carls Jr. restaurant. During their assessment, the appraisers are expected to value the leasehold improvements, equipment, furnishings, fixtures, signs, and inventory. This valuation must align with the standards outlined in Section 23 of the franchise agreement, ensuring a consistent and fair approach to determining the asset values.

Both Carls Jr. and the franchisee share the costs associated with the appraisal. The fees and costs incurred by the appraisers are to be equally borne by both parties, indicating a shared responsibility in obtaining an accurate valuation. This financial arrangement ensures that neither party is unduly burdened by the expense of the appraisal process.