What constitutes a waiver of the Carls Jr. franchisee's option to renew the franchise agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Failure by Franchisee to timely provide CJR the required notice constitutes a waiver by Franchisee of its option to remain a franchisee beyond the expiration of the Initial Term.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee's failure to provide timely written notice to CJR regarding their intent to exercise the renewal option constitutes a waiver of their option to remain a franchisee beyond the initial term. This notice must state whether the franchisee intends to renew and the length of the proposed renewal term, which can be either 10 years or 5 years.
For franchisees who sublease the franchised location from CJR, the notification deadlines differ slightly. These franchisees must provide written notice to CJR not less than 6 months, nor more than 12 months, before notice of renewal is required to be provided to the landlord under the master lease.
Missing these deadlines means the franchisee loses their right to renew the franchise agreement, so it is crucial to adhere to the notification timelines specified in the franchise agreement to maintain the option to continue operating the Carls Jr. restaurant.