What are the conditions that must be met before a Carls Jr. franchisee can commence construction on the site?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Following our acceptance of a site, you must secure the site by entering into a lease or sublease for the site or purchasing the real property. This must be finalized no later than 6 to 9 months after our site acceptance ("Property Control Date"). If you do not do so by the Property Control Date, the site acceptance will be deemed withdrawn without providing you notice. You must commence construction within 6 months after the Property Control Date. If you fail to do so, site acceptance will be deemed withdrawn without providing you notice. You may not commence construction until we have a fully-executed Franchise Agreement with you and you have paid us the Initial Franchise Fees. You must open the
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 42–55)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee must meet certain conditions before commencing construction on their restaurant site. First, Carls Jr. must have a fully-executed Franchise Agreement with the franchisee. Second, the franchisee must have paid the initial franchise fees. Finally, the franchisee must secure the site by entering into a lease or sublease for the site or purchasing the real property no later than 6 to 9 months after site acceptance.
Carls Jr. also requires franchisees to submit construction plans for review, and the franchisee must be notified of the plans' approval within 30 days of receipt, or longer if required. The franchisee is responsible for ensuring these plans comply with all applicable ordinances, building codes, permit requirements, and lease restrictions, using only registered architects, engineers, and licensed contractors.
If a franchisee fails to commence construction within 6 months after the Property Control Date (the date the site is secured), the site acceptance will be deemed withdrawn without notice. Additionally, the restaurant must be opened within 18 months after the Property Control Date, or Carls Jr. has the right to terminate the Franchise Agreement. These stipulations ensure that franchisees proceed in a timely manner and adhere to Carls Jr.'s standards and timelines for development.