In the Carls Jr. Development Agreement, what is the definition of 'Transfer'?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) Any Transfer that requires CJR's prior written consent occurs without Developer having obtained that prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
I am unable to provide a definition of 'Transfer' within the Carls Jr. Development Agreement, according to the 2025 Franchise Disclosure Document. While the document discusses various aspects of the Development Agreement, including development rights, obligations, and potential breaches, it does not explicitly define the term 'Transfer.'
However, the FDD does mention 'Transfer' in the context of requiring Carls Jr.'s prior written consent. Specifically, a breach of the Development Agreement occurs if 'Any Transfer that requires CJR's prior written consent occurs without Developer having obtained that prior written consent.' This implies that certain transfers are permissible with consent, while others are not.
To fully understand what constitutes a 'Transfer' under the Development Agreement and the conditions under which consent is required, prospective Carls Jr. developers should seek clarification from the franchisor. Specifically, they should ask for a comprehensive definition of 'Transfer' as it pertains to the Development Agreement, including examples of actions that would be considered a transfer and the specific procedures for obtaining consent.