What documents might Carls Jr. request for a proposed restaurant site?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
you should not acquire any interest in a site for your Franchised Restaurant until you have been approved as a franchisee (or, if you already are a franchisee, until you have been approved for expansion) and we have accepted the site in writing. We generally do not own the Franchised Restaurant premises and lease them to franchisees.
For each proposed site for a Franchised Restaurant, you will, if requested by us, submit a Franchise Site Application to us. In addition, you may have to submit a complete real estate package (containing that information as we may reasonably require) for a proposed site, which you reasonably believe conforms to our then-current site selection criteria, including demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by CJR or our affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises. Within 30 days after receipt of these documents, and any information which CJR may reasonably require, we will advise you in writing whether we have accepted a particular site; however, CJR has no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with CJR or its affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. Our acceptance or refusal to accept a site for the Franchised Restaurant may be subject to reasonable conditions as determined in our sole discretion.
We may refuse to accept a site for a proposed Franchised Restaurant unless you demonstrate sufficient financial capabilities, in our sole judgment, applying standards consistent with criteria we use to establish Carl's Jr.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 42–55)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are responsible for selecting their restaurant site, subject to the franchisor's approval. Carls Jr. may request a Franchise Site Application and a complete real estate package for each proposed site. This package should include information that aligns with Carls Jr.'s site selection criteria.
The real estate package may include demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, and competition from other businesses. It should also detail the proximity to other businesses, including those operated or franchised by CJR or its affiliates, and the nature of these businesses. Commercial characteristics such as the purchase price, rental obligations, lease terms, the size and appearance of the premises, a site plan, and other physical characteristics of the site should also be included.
Carls Jr. may also require franchisees to demonstrate sufficient financial capabilities to develop, operate, and maintain the Franchised Restaurant. Franchisees may need to furnish financial statements and other information regarding themselves and the proposed restaurant, including investment and financing plans. Carls Jr. will then advise the franchisee in writing whether the site has been accepted within a specified timeframe, typically 30 days after receiving all required documents and information. However, Carls Jr. has no obligation to review any development proposal if the franchisee is not in full compliance with all agreements with CJR or its affiliates. The acceptance of a site may be subject to reasonable conditions at Carls Jr.'s discretion.