What is the document referred to as the 'Lease' in the Carls Jr. Lease Addendum?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS:
Pursuant to the Lease, Landlord will lease or has leased to Tenant certain real property as defined in the Lease ("Premises") for the operation of a franchised Carl's Jr. Restaurant ("Restaurant");
Tenant will develop and operate the Restaurant pursuant to a franchise agreement (the "Franchise Agreement") with Carl's Jr. Restaurants LLC or its affiliates (collectively "CJR"), and the Lease is contingent upon Tenant's execution of the Franchise Agreement with CJR; and
The Franchise Agreement requires, among other things, that the Lease contain certain provisions. Landlord and Tenant desire to modify the Lease to add those required provisions as set forth below, and agree that the terms and provisions of this Lease Addendum are hereby deemed incorporated into and made a part of the Lease.
NOW, THEREFORE, notwithstanding anything to the contrary elsewhere in the Lease, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the Lease Addendum refers to a lease agreement between the Landlord and the Tenant (the franchisee). This lease pertains to real property, defined within the lease itself as the "Premises," which will be used for operating a franchised Carls Jr. Restaurant.
The Lease Addendum modifies the original lease agreement to incorporate provisions required by the Carls Jr. franchise agreement. Specifically, the franchisee's ability to develop and operate the restaurant is contingent upon executing the Franchise Agreement with Carls Jr. Restaurants LLC. The Lease Addendum ensures that the terms of the lease align with the requirements outlined in the Franchise Agreement.
This addendum is crucial because it establishes the relationship between the landlord, the franchisee (tenant), and Carls Jr. It ensures that all parties are aware of their rights and responsibilities, particularly regarding the use of the premises for a Carls Jr. restaurant. The Lease Addendum also protects Carls Jr.'s interests by including provisions that allow them to protect their brand and ensure the restaurant operates according to their standards.