What is the deadline for the legal representative of a deceased or incapacitated Carls Jr. developer to apply in writing for a transfer of ownership?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) The proposed transfer is applied for in writing within 2 months of the date of death or permanent incapacity by the legal representative of such individual, and is effected within 6 months thereafter.
(3) In the case of permanent incapacity, the legal representative shall have furnished a certification of a physician designated by CJR that Developer has been or will be unable to develop or operate any System Restaurants for a period of 6 months or longer.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a Carls Jr. developer dies or becomes permanently incapacitated, their legal representative has a limited time to apply for a transfer of ownership. Specifically, the legal representative must apply in writing for the transfer within 2 months of the date of death or permanent incapacity.
Furthermore, the actual transfer of ownership must be completed within 6 months after the date of death or incapacity. In cases of permanent incapacity, the legal representative must also provide a certification from a physician designated by Carls Jr., confirming that the developer is unable to manage or operate any System Restaurants for at least 6 months.
This requirement ensures that Carls Jr. can promptly address any changes in ownership due to unforeseen circumstances, maintaining the continuity and standards of its franchise operations. It also protects the interests of both the franchisee's estate and the Carls Jr. system by setting clear deadlines and requirements for the transfer process.