Can a franchisee in default of their obligations under existing agreements with CJR or its affiliates participate in the Carls Jr. Travel Center Program?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee in default of their obligations under existing agreements with CJR or its affiliates is not eligible to participate in the Travel Center Program. The Travel Center Program is designed to stimulate the development of new franchised Carls Jr. restaurants and expand the system at travel center and gas and convenience locations.
To be eligible for the Travel Center Program, several requirements must be met. These include the Carls Jr. Restaurant being located at a travel center or gas and convenience location within ½ mile of an interstate or limited access highway, having appropriate signage, and being opened under a Development Agreement dated no later than May 24, 2026. The franchisee must also open the restaurant by the date outlined in the Development Agreement.
Furthermore, the franchisee must be approved for growth by CJR and its affiliates, satisfy CJR's financial and operational requirements for new restaurant development, and ensure that the restaurant meets all requirements of the Travel Center Program. The franchisee's eligibility is contingent upon not being in default of any obligations under existing agreements with CJR or its affiliates.