According to the Carls Jr. agreement, what is the definition of 'Franchised Restaurants'?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Pursuant to certain franchise or license agreements ("Franchise Agreement(s)") between Franchisee and CKR's subsidiary, Carl's Jr. Restaurants LLC ("Franchisor"), Franchisee is the operator of the franchised Carl's Jr. restaurants located at the addresses listed in attached Exhibit A ("Franchised Restaurants"). Franchisee may add new Franchised Restaurants to this Agreement, with CKR's consent, by amending Exhibit A.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, 'Franchised Restaurants' are defined within the context of agreements between a franchisee and Carl's Jr. Restaurants LLC. Specifically, these are the franchised Carl's Jr. restaurants that the franchisee operates, with their addresses listed in an exhibit to the agreement. The franchisee has the potential to add more franchised restaurants to the agreement with CKR's consent, achieved through amendments to the exhibit.
This definition is important because it establishes the scope of the franchisee's operational rights and responsibilities under the franchise agreement. It clarifies that the agreement applies specifically to the restaurants listed and any others that are formally added with CKR's approval. This ensures that both Carls Jr. and the franchisee are aligned on which locations are covered by the terms of their agreement.
For a prospective Carls Jr. franchisee, this means that each restaurant location must be clearly documented and agreed upon with Carls Jr. Any expansion or addition of new locations requires formal consent and amendment to the agreement. This process helps maintain brand consistency and ensures that Carls Jr. has oversight over the growth of the franchise network. The franchisee should pay close attention to the terms and conditions related to adding new locations to ensure compliance with the franchise agreement.