What is the deadline for a Carls Jr. franchisee to sign a Franchise 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.
For Franchisees who are eligible for the 2025 Development Incentive Program, we will reduce the initial franchise fee as set forth in Item 5 and reduce the royalty and APO fee as set forth in Item 6 for the first three years of the franchise term.
If you qualify for the 2025 Development Incentive Program, simultaneously with your execution of the qualifying Franchise Agreement, you will sign a 2025 DIP Addendum to the Franchise Agreement (Exhibit L), which memorializes your right to receive the development incentives described above for the applicable Franchised Restaurant(s). If you sign the 2025 DIP Addendum to Franchise Agreement, you will not be entitled, with respect to the applicable Franchised Restaurant(s) covered by the 2025 Development Incentive Program, to any other incentives that have been or may be offered by us.
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 2025 Development Incentive Program under certain conditions. To qualify, the franchisee must sign a Franchise Agreement for the development of a newly-constructed Carls Jr. Restaurant by no later than May 24, 2026. Alternatively, they can sign a Franchise Agreement for a newly constructed Carls Jr. Restaurant under the terms of a Development Agreement dated no later than May 24, 2026.
In addition to the signing deadline, the franchisee must also open the newly-constructed Carls Jr. Restaurant by the date outlined in the corresponding Development Agreement or Franchise Agreement. The franchisee must not be in default of their obligations under any existing franchise or related agreements with CJR or its affiliates. Furthermore, the franchisee must be approved for growth by CJR and its affiliates and satisfy CJR's current financial and operational requirements for new restaurant development.
If a franchisee meets these qualifications for the 2025 Development Incentive Program, Carls Jr. will reduce the initial franchise fee as detailed in Item 5 and reduce the royalty and APO fee as detailed in Item 6 for the first three years of the franchise term. Upon signing the qualifying Franchise Agreement, the franchisee will also sign a 2025 DIP Addendum to the Franchise Agreement (Exhibit L), which confirms their right to receive the specified development incentives for the applicable Franchised Restaurant(s). However, signing the 2025 DIP Addendum means the franchisee will not be entitled to any other incentives offered by Carls Jr. for the Franchised Restaurant(s) covered by this program.