What capital expenditures are required for a Carls Jr. franchisee to renew their franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Franchisee shall make the capital expenditures required to renovate and modernize the Franchised Restaurant to conform to the interior and exterior designs, decor, color schemes, furnishings and equipment and presentation of the Proprietary Marks consistent with the image of the System for new Carl's Jr. Restaurants at the time Franchisee provides CJR the renewal notice, including such structural changes, remodeling, redecoration and modifications to existing improvements as may be necessary to do so.
(c) Franchisee and its employees at the Franchised Restaurant shall be in compliance with CJR's then-current training requirements.
(5) Franchisee shall pay CJR a renewal fee in the amount of $5,000 for a Renewal Term of 5 years or $10,000 for a Renewal Term of 10 years.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must make certain capital expenditures to qualify for a renewal term. Specifically, the franchisee is responsible for renovating and modernizing the franchised restaurant to meet the current interior and exterior standards of new Carls Jr. restaurants. This includes designs, decor, color schemes, furnishings, equipment, and the presentation of proprietary marks.
Carls Jr. will provide preliminary information regarding the actions a franchisee must take to satisfy these renovation and modernization requirements within 4 months of receiving the franchisee's written notice of their desire to renew. The franchisee is responsible for structural changes, remodeling, redecoration, and modifications to existing improvements necessary to meet the new image standards at the time of renewal.
In addition to these capital expenditures, the franchisee must also ensure that they and their employees meet Carls Jr.'s then-current training requirements. Furthermore, the franchisee must pay a renewal fee of $5,000 for a 5-year renewal term or $10,000 for a 10-year renewal term. Meeting these conditions, along with operating the restaurant according to Carls Jr.'s standards, is essential for a franchisee to secure a renewal term.