What is the deadline for a Carls Jr. franchisee to sign a Development Agreement for a newly-constructed restaurant to be eligible for the 2025 Development Incentive Program if the CJR 2025 Travel Center Development Incentive Program requirements are not met?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If the requirements for the CJR 2025 Travel Center Development Incentive Program are not satisfied, then the Travel Center Location or Gas and Convenience Location may be eligible for the 2025 Development Incentive Program, provided the following requirements are satisfied: (i) franchisee signs a Franchise Agreement for the development of a newly-constructed Carl's Jr. Restaurant(s) by no later than May 24, 2026 or franchisee signs a Franchise Agreement for the development of a newly constructed Carl's Jr. Restaurant pursuant to the terms of a Development Agreement dated no later than May 24, 2026, (ii) franchisee must open the newly-constructed Carl's Jr. Restaurant(s) by the date(s) outlined in the corresponding Development Agreement or Franchise Agreement, (iii) franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with CJR or its affiliates, (iv)
franchisee must be approved for growth by CJR and its affiliates, (v) franchisee must satisfy CJR's thencurrent financial and operational requirements for new restaurant development, and (vi) franchisee and the Carl's Jr. Restaurant(s) otherwise meet the requirements of the 2025 Development Incentive Program.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–20)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a franchisee does not meet the requirements for the CJR 2025 Travel Center Development Incentive Program, they may still be eligible for the standard 2025 Development Incentive Program. To qualify, the franchisee must sign a Development Agreement for the development of a newly-constructed Carl's Jr. Restaurant no later than May 24, 2026.
In addition to signing the Development Agreement by the specified date, the franchisee must also open the newly-constructed Carl's Jr. Restaurant by the date outlined in the Development Agreement. The franchisee must not be in default of any existing agreements with CJR or its affiliates and must be approved for growth by CJR.
Furthermore, the franchisee must meet CJR's current financial and operational requirements for new restaurant development and otherwise satisfy all requirements of the 2025 Development Incentive Program. If these conditions are met, the franchisee may be eligible for incentives such as a reduction in the initial franchise fee and reduced royalty and APO fees for the first three years of the franchise term.