What alterations and modifications is the Carls Jr. tenant allowed to make following the expiration or termination of the lease or Franchise Agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord agrees that, following the expiration or earlier termination of the Lease or the Franchise Agreement, Tenant shall have the right to make those alterations and modifications (including removal and demolition of improvements installed by Tenant or CJR if necessary) to the Premises or any part thereof as may be necessary to clearly distinguish to the public the Premises from a Carl's Jr.
Restaurant and also to make those specific additional changes as CJR reasonably may require for that purpose.
This includes, but is not limited to, removal of all Proprietary Marks.
Landlord further agrees that, if Tenant fails to promptly make the necessary alterations and modifications, CJR shall have the right to do so without being guilty of trespass or other tort so long as CJR makes repairs to the building caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, following the expiration or termination of the lease or Franchise Agreement, the tenant has the right to make alterations and modifications to the premises. These modifications include the removal and demolition of improvements installed by the tenant or Carls Jr., if necessary. The purpose of these changes is to clearly distinguish the premises from a Carls Jr. restaurant.
Carls Jr. may also require specific additional changes for this purpose, including but not limited to the removal of all Proprietary Marks. If the tenant fails to promptly make the necessary alterations and modifications, Carls Jr. has the right to do so without being guilty of trespass or other tort. However, Carls Jr. is responsible for making repairs to the building caused by such removal.
This provision ensures that after the franchise relationship ends, the location will no longer appear to be a Carls Jr. restaurant, protecting the brand's image and preventing confusion for customers. The franchisee is initially responsible for these alterations, but Carls Jr. can step in to ensure the changes are made, with the franchisee bearing the cost of repairs due to the removal process.