Is a Carls Jr. franchisee required to obtain and maintain all necessary permits and licenses for the Franchised Restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees, at its sole expense, to do or cause to be done the following, by the Opening Date:
- (1) Obtain and maintain all required building, utility, sign, health, sanitation, business and other permits and licenses applicable to the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee is responsible for obtaining and maintaining all necessary permits and licenses for their franchised restaurant. This includes building, utility, sign, health, sanitation, and business permits and licenses. The franchisee bears the sole expense for acquiring and keeping these permits and licenses current.
This requirement means that prospective Carls Jr. franchisees must factor in the costs and time associated with securing all required permits and licenses. These costs can vary significantly depending on the location of the restaurant and local regulations. Failure to obtain or maintain these permits can result in fines, penalties, or even the closure of the restaurant.
It is common practice in the franchise industry for franchisees to be responsible for obtaining and maintaining their own permits and licenses, as they are the ones operating the business at the local level. This ensures compliance with local laws and regulations, which can vary widely from one location to another. Therefore, a prospective Carls Jr. franchisee should thoroughly research the specific permit and license requirements in their desired location and budget accordingly.