Can a franchisee make substantial changes to the approved construction plans for a Carls Jr. restaurant without prior approval?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
ll be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. It shall be Franchisee's responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. Franchisee shall use only registered architects, registered engineers, and professional and licensed contractors.
Franchisee shall submit proposed construction plans, specifications and drawings for the Franchised Restaurant ("Plans") to CJR and shall, upon CJR's request, submit all revised or "as built" Plans during the course of such construction. CJR will review the Plans and notify Franchisee within 30 days after CJR receives the Plans, or such longer period as CJR requires, whether the Plans are approved. CJR's approval shall not be unreasonably withheld. Once CJR has approved the Plans and Franchisee has signed
each page of the Plans acknowledging the approval and Franchisee's obligations for compliance, no substantial change shall be made to the Plans without the prior approval of CJR, which shall not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee cannot make substantial changes to the approved construction plans for a restaurant without prior approval from CJR. The franchisee must submit proposed construction plans, specifications, and drawings to CJR for review. CJR then has 30 days, or potentially longer, to review and notify the franchisee of approval.
Once the plans are approved by CJR and signed by the franchisee, acknowledging their obligation for compliance, no substantial changes can be made without CJR's prior approval, which will not be unreasonably withheld. If changes are contemplated during construction, the franchisee must obtain approval from CJR before proceeding. CJR is expected to approve or disapprove plan changes within 10 business days after receiving the request.
The FDD states that franchisees are prohibited from beginning site preparation or construction before receiving written notification of plan approval from CJR. All construction must adhere to the approved plans and comply with all applicable laws and regulations. Failure to comply with these construction standards can prevent the restaurant from opening, and if the non-compliance is not resolved in a commercially reasonable time, the franchise agreement may be terminated. This ensures that all Carls Jr. restaurants maintain a consistent brand image and meet required safety and legal standards.