According to the Carls Jr. Lease Addendum, what is the definition of 'Restaurant'?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the Lease, Landlord will lease or has leased to Tenant certain real property as defined in the Lease ("Premises") for the operation of a franchised Carl's Jr. Restaurant ("Restaurant");
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the Lease Addendum refers to the 'Restaurant' as a franchised Carls Jr. Restaurant. The Lease Addendum is an agreement between the Landlord and the Tenant (the franchisee) to modify the existing lease to incorporate provisions required by the Carls Jr. franchise agreement.
The Lease Addendum states that the landlord is leasing the property, defined in the lease as 'Premises', to the tenant for the operation of the franchised Carls Jr. Restaurant. The agreement is contingent upon the franchisee executing the Franchise Agreement with Carls Jr. Restaurants LLC. This Lease Addendum ensures that the lease aligns with the requirements of the Franchise Agreement.
This definition is important for prospective franchisees as it clarifies that the leased property must be used specifically for operating a Carls Jr. Restaurant. It also highlights the interconnectedness of the lease agreement and the franchise agreement, emphasizing that both must be in place for the franchisee to operate the business. The Lease Addendum ensures that the landlord is aware of and consents to the operation of a Carls Jr. restaurant on their property, including the use of proprietary signs and trademarks.