For a Carls Jr. franchise renewal, what are some of the conditions to be satisfied by the franchisee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS
- A. In order to stimulate the development of new franchised Carl's Jr. Restaurants and the continued expansion of the System at eligible travel center and gas and convenience locations, CJR has established the 2025 CJR Travel Center Development Incentive Program (the "Travel Center Program").
- B. To be eligible for the Travel Center Program, the following requirements must be satisfied: (i) the Carl's Jr. Restaurant must be located at a travel center location or gas and convenience location that is within ½ mile of an interstate or limited access highway and must include a combination of high rise pylon sign, billboard or other highway sign, (ii) the travel center location or gas and convenience location must be opened pursuant to a Development Agreement dated no later than May 24, 2026, that includes the development of at least three (3) newlyconstructed Carl's Jr. Restaurant(s), (iii) Franchisee must open the Franchise Restaurants from a travel center location or gas and convenience location by the date(s) outlined in the corresponding Development Agreement, (iv) Franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with CJR or its affiliates, (v) Franchisee must be approved for growth by CJR and its affiliates, (vi) Franchisee must satisfy CJR's then-current financial and operational requirements for new restaurant development, and (vii) Franchisee and the Carl's Jr. Restaurant(s) otherwise meet the requirements of the Travel Center Program.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
The 2025 Carls Jr. Franchise Disclosure Document outlines specific conditions a franchisee must meet to be eligible for certain incentive programs, which are relevant in the context of franchise agreements and potential renewals. These conditions are tied to the 2025 CJR Travel Center Development Incentive Program.
To be eligible for the Travel Center Program, the Carl's Jr. restaurant must be located at a travel center or gas and convenience location within 1/2 mile of an interstate or limited access highway. The location needs to have a high rise pylon sign, billboard, or other highway sign. The travel center location or gas and convenience location must be opened under a Development Agreement dated no later than May 24, 2026. This agreement must include the development of at least three newly-constructed Carl's Jr. Restaurants.
Further, the franchisee must open the franchise restaurants from a travel center or gas and convenience location by the dates outlined in the corresponding Development Agreement. The franchisee cannot be in default of their obligations under existing franchise agreements or related agreements with CJR or its affiliates. The franchisee must also be approved for growth by CJR and its affiliates and satisfy CJR's current financial and operational requirements for new restaurant development. Finally, both the franchisee and the Carl's Jr. restaurants must meet all requirements of the Travel Center Program. Meeting these conditions allows the franchisee to participate in program incentives that modify the Franchise Agreement.