Besides the Franchise Agreement, does Carls Jr. require a Development Agreement as part of its franchising process, according to the list of contracts?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
ncies identified on Exhibit B to receive service of process for us in the particular state.
Issuance Date: May 24, 2025
I have received a disclosure document issued on May 24, 2025. This disclosure document included the following exhibits: A. List of State Administrators; B. Agents for Service of Process; C. Development Agreement; D. Franchise Agreement; E. Preliminary Agreement; F. Confidentiality Agreement; G-1. Software Support Agreement for PAR Brink and CrunchTime; G-2 OLO Authorized Operator Agreement; H. List of Franchisees That Closed/Transferred Franchised Restaurants in last Fiscal Year; I. List of Franchis
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a Development Agreement is required as part of the franchising process. Item 22 lists the agreements related to a Franchised Restaurant that are attached as exhibits to the disclosure document.
Specifically, Exhibit C is the Development Agreement, while Exhibit D is the Franchise Agreement. This indicates that in addition to the Franchise Agreement, prospective franchisees must also sign a Development Agreement with Carls Jr.
Development Agreements are commonly used in franchising when a franchisee commits to opening multiple units over a specified period. These agreements outline the development schedule, geographic territory, and other obligations related to expanding the franchise network. Therefore, a prospective Carls Jr. franchisee should carefully review the Development Agreement to understand their commitments regarding the number of restaurants they must open and the timeline for doing so.