Besides advising Carls Jr. in writing, what other documents must a Carls Jr. Developer submit when proposing a Transfer?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Developer shall advise CJR in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, submit a copy of all contracts and all other agreements or proposals and submit all other information requested by CJR relating to the proposed Transfer.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a Developer proposing a transfer must take several steps beyond simply advising Carls Jr. in writing. Specifically, the Developer must submit (or ensure the proposed transferee submits) a franchise application for the transferee. Additionally, the Developer is required to provide a copy of all contracts, agreements, or proposals related to the transfer.
Carls Jr. also requires the Developer to submit any other information it requests that is related to the proposed transfer. This broad requirement allows Carls Jr. to gather all necessary details to evaluate the transfer thoroughly.
These requirements ensure that Carls Jr. has ample opportunity to assess the suitability of the proposed transferee and the terms of the transfer, protecting its brand and the interests of its franchise system. The prospective franchisee should be prepared to provide comprehensive documentation and be responsive to any additional information requests from Carls Jr.