What is the duration of the Due Diligence Period after Carls Jr.'s Purchase Notice?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. For a period of 60 days after the date of CJR's Purchase Notice ("Due Diligence Period"), CJR shall have the right to conduct such investigations as it deems necessary and appropriate to determine: (1) the ownership, condition and title of the Assets; (2) liens and encumbrances on the Assets; (3) environmental and hazardous substances at or upon the Franchised Location; and (4) the validity of contracts and liabilities inuring to CJR or affecting the Assets, whether contingent or otherwise.
Franchisee will afford CJR and its representatives access to the Franchised Restaurant and the Franchised Location at all reasonable times for the purpose of conducting inspections of the Assets; provided that such access does not unreasonably interfere with Franchisee's operation of the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, after Carls Jr. issues a Purchase Notice, they have a 60-day Due Diligence Period. During this period, Carls Jr. has the right to conduct investigations to assess various aspects of the assets they are considering purchasing.
This investigation includes determining the ownership, condition, and title of the assets, as well as identifying any liens or encumbrances. Carls Jr. will also investigate for any environmental or hazardous substances present at the franchised location. Additionally, they will assess the validity of contracts and liabilities that could affect the assets or Carls Jr.
During this 60-day period, the franchisee is obligated to provide Carls Jr. and its representatives with access to the franchised restaurant and location for inspections. However, this access should not unreasonably interfere with the franchisee's operation of the restaurant. This due diligence period allows Carls Jr. to thoroughly evaluate the assets before finalizing the purchase.