What must a Carls Jr. franchisee do to show their participation in the 2025 CJR development incentive program?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. To be eligible for the Program, the following requirements must be satisfied: (i) Franchisee must sign a Development Agreement for the development of a newly-constructed Carl's Jr. Restaurant by no later than May 24, 2026 or Franchisee must sign a Franchise Agreement for the development of a newly constructed Hardee's Restaurant pursuant to the terms of a Development Agreement dated no later than May 24, 2026, (ii) Franchisee must open the newlyconstructed Carl's Jr. Restaurant(s) by the date(s) outlined in the corresponding Development Agreement or Franchise Agreement, (iii) Franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with CJR or its affiliates, (iv) Franchisee must be approved for growth by CJR and its affiliates, (vi) Franchisee must satisfy CJR's thencurrent financial and operational requirements for new restaurant development, and (v) Franchisee and the Carl's Jr. Restaurant(s) otherwise meet the requirements of the Program.
- C. Franchisee and the Franchised Restaurant are eligible to participate in the Program.
- D. Consequently, CJR and Franchisee are entering into this Addendum to modify the Franchise Agreement to reflect the Franchisee's participation in the Program incentives.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, to participate in the 2025 CJR development incentive program, a franchisee must meet several requirements. First, they must sign a Development Agreement for a newly-constructed Carls Jr. Restaurant by May 24, 2026, or sign a Franchise Agreement for a newly constructed Hardee's Restaurant under a Development Agreement also dated by May 24, 2026. The franchisee must then open the new Carls Jr. Restaurant by the date specified in the Development Agreement or Franchise Agreement.
Additionally, the franchisee cannot be in default of any existing agreements with CJR or its affiliates and must be approved for growth by CJR and its affiliates. They also need to meet CJR's current financial and operational standards for new restaurant development. Finally, both the franchisee and the Carls Jr. Restaurant must fulfill all other requirements of the specific incentive program.
Upon meeting these conditions, Carls Jr. and the franchisee will enter into an addendum to modify the Franchise Agreement, officially documenting the franchisee's participation in the incentive program. This addendum serves to reflect the specific incentives the franchisee will receive as part of the program, such as reduced royalty fees or advertising contributions for a limited time.