What is the deadline for a Carls Jr. franchisee to open their restaurant after the Property Control Date?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the occurrence of any events, except events constituting Force Majeure, construction shall be completed and the Franchised Restaurant shall be furnished, equipped and shall otherwise be ready to open for business in accordance with this Agreement not later than 18 months after the Property Control Date ("Opening Date").
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee has 18 months from the Property Control Date to complete construction and open their restaurant for business. The Property Control Date is defined as the effective date of the lease or sublease, or the closing date of the purchase of the real property for the Franchised Location.
Carls Jr. requires franchisees to commence construction within 6 months after the Property Control Date, setting a deadline for the start of the building process. Failure to begin construction within this timeframe may result in the withdrawal of site acceptance without notice. However, once construction begins, it must proceed without interruption, except for delays caused by events constituting Force Majeure, which may extend the opening date proportionately.
This 18-month deadline is a critical factor for prospective Carls Jr. franchisees to consider, as it dictates the timeframe within which they must manage all aspects of restaurant development, from securing permits to completing construction and purchasing necessary equipment. Franchisees need to carefully plan and manage their resources to meet this deadline and avoid potential delays or penalties.