Where can I find more detailed information about my obligations as a Carls Jr. franchisee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
red and non-owned vehicles, and Builder's Risk with limits no less than $1,000,000, with CJR named as an additional insured, as well as Workers' Compensation and Employer's Liability as required by state law.
ITEM 9 FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the Franchise and Development Agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.
| Obligation | Section in Franchise Agreement (FA) and Development Agreement (DA) | Disclosure Document Item | ||
|---|---|---|---|---|
| a. | Site selection and acquisition/lease | FA: Section 3 DA: Sections 3-5 | Items 7 & 11 | |
| b. | Pre-opening purchases/leases | FA: Sections 3-5 DA: Section 3-6 | Items 7 & 8 | |
| c. | Site development and other pre- opening requirements | FA: Sections 3 - 7 DA: Sections 3 & 5-6 | Items 6, 7 & 11 | |
| d. | Initial and ongoing training | FA: Section 11 DA: Section 5 | Items 5, 6, 7 & 11 | |
| e. | Opening | FA: Section 5 DA: Not Applicable | Item 11 | |
| f. | Fees | FA: Sections 3, 5, 8 & Appendix A-C DA: Section 4 | Items 5 & 6 | |
| g. | Compliance with standards and policies/Operating Manual | FA: Sections 6, 7 & 10 DA: Section 6 | Items 8 & 11 | |
| h. | Trademarks and proprietary information | FA: Section 11 DA: Not Applicable | Items 13 & 14 | |
| i. | Restrictions on products/services offered | FA: Section 10 DA: Not Applicable | Item 16 | |
| j. | Warranty and customer service requirements | FA: Section DA: Not Applicable | Item 11 | |
| k. | Territorial development and sales quotas | FA: Not Applicable DA: Sections 1-3 & Appendix A-B | Item 12 | |
| l. | Ongoing product/service purchases | FA: Section 10.B. DA: Not Applicable | Item 8 | |
| m. | Maintenance, appearance and remodeling requirements | FA: Sections 2, 7 & 10 DA: Not Applicable | Item 11 | |
| n. | Insurance | FA: Section 12 DA: Section 7 | Items 6 & 7 | |
| o. | Advertising | FA: Section 5 & Appendix C DA: Not Applicable | Items 6 & 11 | |
| p. | Indemnification | FA: Section 22 DA: Section 16 | Item 6 | |
| q. | Owner’s participation/ management/staffing | FA: Sections 10 & 13 DA: Section 8 | Items 11 & 15 | |
| r. | Records and reports | FA: Section 4 DA: Not Applicable | Item 6 |
| Obligation | Section in Franchise Agreement (FA) and Development Agreement (DA) | Disclosure Document Item | |
|---|---|---|---|
| s. | Inspections and audits | FA: Sections 4 & 9 DA: Not Applicable | Items 6 & 11 |
| t. | Transfer | FA: Sections 14 & 15 DA: Sections 9 & 10 | Item 17 |
| u. | Renewal | FA: Section 2 DA: Not Applicable | Item 17 |
| v. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Item 9 provides a table outlining a franchisee's principal obligations under both the Franchise Agreement (FA) and the Development Agreement (DA). This table serves as a roadmap, directing franchisees to specific sections within these agreements and relevant items within the disclosure document itself for more detailed information.
The table lists various obligations, such as site selection and acquisition/lease, pre-opening purchases/leases, site development, initial and ongoing training, and opening procedures. For each obligation, the table indicates the corresponding sections in the Franchise Agreement and Development Agreement where further details can be found. It also references specific items within the disclosure document that provide additional context. For example, information on site selection and acquisition/lease can be found in Section 3 of the Franchise Agreement, Sections 3-5 of the Development Agreement, and Items 7 & 11 of the disclosure document.
Other obligations listed in the table include fees, compliance with standards and policies, trademarks and proprietary information, restrictions on products/services offered, warranty and customer service requirements, territorial development and sales quotas, ongoing product/service purchases, maintenance and remodeling, insurance, advertising, indemnification, owner's participation, records and reports, inspections and audits, transfer, renewal, post-termination obligations, non-competition covenants and dispute resolution. By consulting the referenced sections and items, prospective Carls Jr. franchisees can gain a comprehensive understanding of their responsibilities and the franchisor's expectations.