Does the Carls Jr. franchise agreement require that the execution of the agreement not conflict with any other agreements the Developer has with third parties?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
All information Developer provided to CJR in connection with Developer's franchise application and CJR's grant of the development rights is truthful, complete and accurate. The persons signing this Agreement on behalf of Developer have full authority to enter into this Agreement and the other agreements contemplated by the parties. Execution of this Agreement or such other agreements by Developer does not and will not conflict with or interfere with, directly or indirectly, intentionally or otherwise, with the terms of any other agreement with any other third party to which Developer or any person with an ownership interest in Developer is a party.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchise agreement includes an assurance regarding conflicts with other agreements. Specifically, the agreement states that the execution of the Development Agreement by the Developer does not and will not conflict with the terms of any other agreement with any other third party to which the Developer or any person with an ownership interest in the Developer is a party.
This provision is meant to ensure that the Developer is free to enter into the agreement with Carls Jr. without violating any prior commitments. It protects Carls Jr. from potential legal issues that could arise if the Developer is bound by conflicting obligations.
For a prospective Carls Jr. developer, this clause highlights the importance of reviewing all existing agreements to confirm that entering into the Carls Jr. Development Agreement will not cause a breach of any other contract. It also emphasizes the need for transparency with Carls Jr. regarding any potential conflicts or obligations that could affect their ability to fulfill the terms of the Development Agreement.