In the case of permanent incapacity of a Carls Jr. developer, what certification must the legal representative furnish to CJR?

According to the 2025 Carls Jr. Franchise Disclosure Document, in the event of a developer's permanent incapacity, their legal representative must provide CJR (Carls Jr. Restaurants LLC) with a specific certification. This certification must come from a physician designated by CJR, attesting that the developer is, or will be, unable to develop or operate any System Restaurants for a period of six months or longer.

This requirement ensures that Carls Jr. has a medically substantiated basis for acknowledging the developer's incapacity. By designating the physician, Carls Jr. maintains control over the evaluation process, ensuring an objective assessment. This protects Carls Jr.'s interests by preventing potentially unsubstantiated claims of incapacity.

For a prospective Carls Jr. franchisee, this means that in the unfortunate event of permanent incapacity, their legal representative will need to work with Carls Jr. to arrange an evaluation by a CJR-designated physician. The legal representative must furnish the physician's certification to CJR to facilitate any transfer or other necessary actions related to the development agreement. This process must be initiated within two months of the date of permanent incapacity.

It is important to note that the transfer of the development rights must be completed within six months of the date of death or permanent incapacity. This timeline underscores the need for prompt action by the legal representative to ensure compliance with the agreement and to facilitate a smooth transition.