In the context of a Carls Jr. franchise renewal, what document do CJR and the franchisee execute?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. CJR and Franchisee have executed the Franchise Agreement to renew the Franchise granted to Franchisee pursuant to the Prior Agreement.
- D. Those individuals identified above as "Guarantors," if any, have guaranteed Franchisee's obligations under the Franchise Agreement.
- E. CJR, Franchisee and Guarantors desire to modify certain provisions of the Franchise Agreement as reflected in this Addendum.
AGREEMENT
NOW THEREFORE, in consideration of the covenants and agreements set forth below, the parties agree as follows:
- 1. In connection with the execution of the Franchise Agreement and the renewal of the Franchise previously granted to Franchisee, Franchisee has agreed to timely satisfy the conditions, if any, listed in attached Appendix 1. Franchisee acknowledges that its failure to timely satisfy the conditions identified in Appendix 1 shall constitute a default under the Franchise Agreement.
- 2. Franchisee agrees that CJR's execution of the Franchise Agreement does not constitute a waiver of any monies owed by Franchisee to CJR or its affiliates under the Prior Agreement.
- 3. If the Franchised Restaurant is leased or subleased from a third party ("Landlord"), Franchisee shall provide CJR a copy of the fully-executed lease or sublease, together with any amendments to the lease or sublease (collectively, "Lease") simultaneously with the execution of this Addendum. The term of the Lease shall continue for at least the Renewal Term of the Franchise Agreement. If the Lease does not contain the language required by CJR to be included in the Lease, or if Franchisee has not previously provided CJR with a fully-signed Lease Addendum as required by the Prior Agreement and the Franchise Agreement, Franchisee shall use its best efforts to obtain the Landlord's signature on CJR's Lease Addendum, in the form attached to the Franchise Agreement, and provide CJR with a fully signed Lease Addendum within 60 days after the commencement date of the Renewal Term.
- 4. Franchisee represents and warrants that it has the right to remain in possession of the Franchised Restaurant for the Renewal Term.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, when renewing a franchise, CJR (Carl's Jr. Restaurants LLC) and the franchisee execute an addendum to the Carl's Jr. Restaurant Franchise Agreement. This addendum modifies certain provisions of the existing Franchise Agreement to reflect the renewal. The addendum is entered into by CJR, the franchisee, and any guarantors simultaneously with the Franchise Agreement.
The FDD states that the franchisee has been operating the restaurant under one or more prior agreements, the initial terms of which have expired or will soon expire. As part of the renewal process, the franchisee must agree to satisfy any conditions listed in Appendix 1 of the addendum. Failure to meet these conditions constitutes a default under the Franchise Agreement.
Additionally, CJR's execution of the Franchise Agreement does not waive any outstanding debts the franchisee owes to CJR or its affiliates under the prior agreement. If the restaurant premises are leased from a third party, the franchisee must provide CJR with a copy of the fully executed lease, including any amendments, to ensure the lease term extends for at least the renewal term of the Franchise Agreement. The franchisee also warrants that they have the right to remain in possession of the restaurant for the renewal term.