What must a Carls Jr. franchisee provide to CJR if the franchised location is leased, before opening?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee has not previously provided CJR with a fully-signed copy of its lease or sublease for the Franchised Location, or proof that Franchisee has purchased the real estate for the Franchised Location, Franchisee shall immediately upon execution of this Agreement provide CJR with a copy of the fully-signed lease or sublease, together with the executed Carl's Jr. Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a franchisee has not already provided a fully-signed copy of the lease or sublease for the franchised location to CJR, the franchisee must provide CJR with a copy of the fully-signed lease or sublease immediately upon execution of the Franchise Agreement. This submission must also include the executed Carl's Jr. Lease Addendum, which is attached as Appendix G to the Franchise Agreement.
This requirement ensures that Carls Jr. has a record of the franchisee's right to occupy the premises and that the lease terms are acceptable to the franchisor. The "Property Control Date" is defined as the effective date of the lease or sublease, or the closing date of the purchase of the real property, which is a key date for tracking various obligations and deadlines under the Franchise Agreement.
For a prospective Carls Jr. franchisee, this means that securing a suitable location and finalizing the lease agreement are critical first steps. The franchisee should work closely with Carls Jr. to ensure that the lease terms meet their requirements and that the Lease Addendum is properly executed. Failure to provide the required documentation promptly could potentially delay the opening of the franchised restaurant.