Is a Carls Jr. franchisee required to continuously operate the Franchised Restaurant as specified?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
erform all necessary maintenance, repairs and replacements to the Franchised Restaurant as CJR may prescribe from time to time including periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn out signage, floor coverings, furnishings, equipment and decor.
Franchisee shall not make any material alterations to the Franchised Restaurant that affect operations or the image of the System without CJR's prior written approval. Franchisee acknowledges and agrees that the requirements of this Section are both reasonable and necessary to ensure continued public acceptance and patronage of Carl's Jr. Restaurants, to assist the Franchised Restaurant to compete effectively in the marketplace and to avoid deterioration or obsolescence of the operation of the Franchised Restaurant.
If the Franchised Restaurant is leased or subleased and the lease/sublease is renewed or extended (or a new lease/sublease is executed) during the Initial Term of this Agreement, Franchisee shall exercise good faith efforts to obtain the landlord's consent to inclusion of the lease provisions required by CJR pursuant to Section 3 of this Agreement.
G. Maximum Operation of the Franchised Restaurant
During the term of this Agreement, Franchisee shall use the Franchised Location solely for the operation of the Franchised Restaurant and shall maintain sufficient inventories, adequately staff each shift with qualified employees and continuously operate the Franchised Restaurant at its maximum capacity and efficiency for the minimum number of days and hours set forth in the OPM or as CJR otherwise prescribes in writing (subject to the requirements of local laws and licensing requirements).
Franchisee shall immediately resolve any customer complaints regarding the quality of food or beverages, service and/or cleanliness of the Franchised Restaurant or any similar complaints.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must operate their restaurants continuously. Specifically, the franchisee must use the location solely for the operation of the Carls Jr. restaurant. They must also maintain sufficient inventory and adequately staff each shift with qualified employees.
Carls Jr. franchisees are required to operate the restaurant at its maximum capacity and efficiency for a minimum number of days and hours. These minimums are set forth in the Operations Procedures Manual (OPM) or as otherwise prescribed in writing by Carls Jr., subject to local laws and licensing requirements.
Furthermore, the franchisee is responsible for maintaining the restaurant in first-class condition and repair. This includes all furniture, fixtures, equipment, interior and exterior signage, the building itself, landscaping, and parking lot surfaces. Franchisees must also address customer complaints promptly, and Carls Jr. may intervene in customer disputes if they deem it necessary to protect the brand's goodwill, charging the franchisee for the costs of such intervention.